Gold and Silver Forecast 01-09-12

I commence with my gratitude to The All-Knower

Gold Weekly Chart

Gold has had very strong bull-run. As a matter of fact, it has been steadily rising and recently in a parabolic move from its break out of side-way or slightly flat/upward channel in January 2006. See attached Chart Weekly Chart i) and in the second chart which is similar chart but with more zoomed in view at the current price.

Gold Weekly Chart and Forecast

You shall see the price/time cycle channels labeled with pink, brown and yellow color have been dominant in gold moves. Gold recent drop to $1,532 level was supported by my discovered NHN price levels and the ascending brown and pink. Gold then rose to $1800 level, making a lower high and then broke down and then it broke below the brown and yellow channels lines, which offered support earlier in last week of September 2011. However, gold found its support at the lower band of the another ascending price/time channel, labeled with yellow color. Said ascending trend-line has kept the gold trend higher since the low of October 2008, the bear market low.

However, the resistance is very strong as well. Therefore, it is important to watch the ascending yellow channel lower band trend-line. Once that is broken then it shall create a serious sell-off. The opposite, in the case scenario, where not only the support of yellow line is held but gold also breaks above the brown and pink price/time cycle lines (These lines incidentally coincide with 200 and 21 days moving averages.). That shall mean another leg of bull run is yet to be completed…!!