GOLD Primary and Secondary cycles
As noted last week, whilst Gold is above 1492.00 the trend bias is to continue upwards, with the possibility that the trend continues towards $1679 in 2011.
In the short-term the trend is likely to see a push up towards next week's highs.
The ideal pattern to get back into trend (if your not on it)...
is to see a 1 week reversal pattern that closes on it's lows, but it aligns with the MAY 50% level....@ $1486
if the trend is going to continue upwards, it then should remain above 1492 and continue towards new highs in July, as it trends towards $1679
Silver Primary and Secondary cycles
Where silver is right now ($47.95), I deem it as 'bubble territory'...
however it doesn't mean that the trend can't continue to trend upwards during 2011.
There is a breakout of the April highs, which often will continue to trend up towards the highs in July (3rd Quarter, & target unknown as yet)
But if it's in bubble territory, then I would like to see the early price action in MAY come back and revisit support levels, before the trend has the potential to continue higher in the current year.
Basically, I would like to see a weekly 'bar' (5-days) come down into support levels
Support levels vary:- as it can remain above $41.52
or dip down into $38-39.22 (1-3 days)
And then move back above $41.52 and continue upwards into higher highs by July (3rd Quarter highs)