Greetings!,

Precious metals prices closed solidly higher in New York today. Whether it is a combination of short covering and bargain-hunting there were three technical indicators that pointed to the potential of a key reversal, prices moved up.  After trading to seven-week highs the U.S. dollar closed lower today with crude oil closing nominally higher.

With gold rebounding so strongly there is a distinct possibility that we have concluded this correction and will begin a strong impulse wave to the upside, wave three. This impulse wave should be at least equal to the price move seen in our first impulse wave, which began at the end of December last year and carried prices almost $1800. With the type of potential available in this upside impulse wave, positioning ourselves on the long side could prove to be a very fruitful trade.

 As always, wishing you good trading,

       Today's video 

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Proper Action

GOLD & SILVER :

Bottom forming in gold

Buy gold @ market currently  1657.40 stop below 1625

MARKET FORECAST

Gary S. Wagner

Gold & Silver: on a technical basis there were three separate indications that we have found a possible bottom in gold and a conclusion to this corrective wave C. The first indication was our anticipation of a price move roughly 61% of the upside rally that began December of last year. This retracement of gold went to an intraday low of 1634, less than $10 from a 61% retracement, which placed gold prices at 1626. Secondly a candlestick pattern known as a piercing line formed in our daily charts. Lastly when we look at a 720 min. Japanese average chart we got a clear indication of a key market reversal based upon the Japanese average candles. Today's video will look at these three indicators in detail.

Gold Chart

 SILVER Chart:

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