1/27/2011 The Weekend Report

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For the seventh week in a row the precious metals markets have rallied, culminating in an incredible upside breakout this week in response to the Federal Reserve's posture to maintain low interest rates as well as continue quantitative easing relating to the purchase of bonds.
 
Add this to the continuing debt crisis in the European Union, and the return of Asian traders next week after celebrating the lunar new year and you have a potentially potent mix for this rally to continue on a little higher. Today's report will look at our upcoming potential pivot points for potential short-term tops in both gold and silver. Traders: the most important thing to realize is there is still room on the upside for this rally.
 
For my longer term market forecast and overview, I invite you to read my latest commentary published this morning on kitco metals website.
 
 
Positioning:
Being at the right place at the right time. 

This week can be characterized as a continuation of a bullish rally, which began at the end of December. The stellar performance we witnessed in the precious metals markets was second to none. Of course, to take maximum advantage of this move you had to be positioned prior to this massive rally. Being at the right place at the right time should not be underestimated.
 
Fortunately we were able to secure positions at the beginning of this year when, on December 2, I issued the first buy recommendation of the year, going long gold at 1580 and long silver at 28.10. 
 
Positioning is not a matter of luck but rather concise and decisive hard work that yields the necessary insights as well as the fortitude to act upon that knowledge. It is my job to provide you with the insight, and your job as the individual trader to find the fortitude to act upon it. 
 
I wish to commend you for your fortitude and am grateful that this combination has provided you with exceptional results.
 
 As always wishing you good trading,

 


 
Executive Producer
The Gold Forecast 

gary@thegoldforecast.com 

On Skype Gary.S. Wagner 


 

 

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READ TODAY'S 
COMMENTARY

The  Running of the Bulls Part II
01.27.2012

Proper Action

 

 

GOLD: Maintain Long @1580. On a technical basis, our next real level of resistance is 1750 per ounce. Aggressive traders should have added a third leg to the long gold position anywhere between 1707 and 1711. Your stop should be sitting below 1650.

 

SILVER: Maintain Long @28.10. Our initial target was hit as silver traded past 31.86. Silver is trading just at 34 dollars per ounce and we have gained over six dollars on the trade. I believe there is still more on the table as you already know my hard resistance level is at about $35 per ounce. Your stop should be sitting below 32.00. 

 

 

 


MARKET FORECAST

Gary S. Wagner

   

GOLD AND SILVER: 
On a technical basis both gold and silver have provided us with solid evidence that the lows seen towards the end of December were in fact the end of our corrective cycle. Both gold and silver have traded above my first initial target as we witnessed a continuation of a major bull rally in the precious metals. Today's video will discuss in detail my set of pivot points in which the possibility exists of a correction. 
 
Realize that we are still fully immersed in an intermediate wave one. That is the good news. Typically wave two has the steepest correction of the two corrective waves. Rule of thumb is that the market could correct as much as 61% and still fall within the defined parameters of a bullish rally. I still believe there is upside potential in this first wave, but at the same time we need to be on guard and ready for any market scenario so that we can maximize returns and minimize any drawdowns.



   

    

Copyright (c) 2011 Wagner Financial Group 
 
Before deciding to participate in Gold or Silver investments, you should carefully  consider your investment objectives, level of experience and risk appetite. Most importantly with futures activity do not invest money you cannot afford to lose.There is considerable exposure to risk in any futures exchange transaction, including, but not limited to, leverage,and market volatility that may substantially affect the price of  gold and /or silver. Moreover, the leveraged nature of futures trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you.