   |
|||
Feb 6th - Examining Silver and GoldDavid Banister On January 25th as we were involved in a correction in the precious metals area, I had sent out an Email update in Pre-market that morning and regarding silver, this is what I wrote: “Look for Silver to drop as I’ve predicted to the 25.50-26.50 zones as well. Often the stocks themselves bottom first though, so it’s close to time to look at SLW again as a trade perhaps?” Silver did in fact bottom at 26.06, almost right in between my interim forecast pivots that day. Silver Wheaton was at $28.60 that morning and has now risen to $33.86 with a high of $34.50. You see, the stocks in the precious metals sector bottom just ahead of the actual metals and begin to rise in advance of the turn. That is a 20% gain in Silver Wheaton just since that January 25th update. Since that time, I updated Gold again to show the 3-3-5 pattern that had been unfolding, and called for 1310 or 1287 pivots. We pivoted at 1310 I believe the next day. Below is the Chart I sent out looking for one more drop to complete the 3-3-5: (Click on images to enlarge)
Gold is now trading around $1345-$1350, and I have since that last major update of a 3-3-5 pattern gone officially bullish with a 75% chance that 1310 was the low for Wave 4 of this corrective pattern, and 25% that it may fall to $1287 and pivot there. The advice was to go long Gold for a 1/2 tranche if you were a trader/investor, and hold some powder in case that 1287 area it hit or close. My feeling is Gold has bottomed and will continue to work higher along with Silver. I see $1382 as a big resistance zone in gold to watch carefully to see if it can get through. I suspect it may take several months to get past $1430 again, but one week at a time. Silver has climbed back over $29 per ounce and although it may pull back some near term, it looks like the 50% odd Fibonacci pullback at 26.06 was just what the Bull Doctor ordered to shake out the weak longs and then continue higher. A pullback near term is possible, but the probabilities favor a move back to test the highs in the low 31’s.
### David Banister David A. Banister is the founder and Chief Investment Officer of Active Trading Partners, LLC. David uses his unique methods of forecasting major market turns in addition to Gold, Oil, Sectors, and individual stocks with counter-intuitive methods he has developed over twenty years of investing. David can be reached at dbanister@cox.net. The opinions of the author are his opinions only and not meant to be construed or interpreted as investment advice. Markets are extremely volatile and you should consult an Investment Advisor or Professional whenever possible. © 2011 TheMarketTrendForecast.com. All Rights Reserved. 321gold Ltd |
