GOLD & SILVER Report 7th may 2011

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


Previous Weekly report…

Gold Primary and Weekly cycles

Last week has seen a 5-day reversal pattern down into the Weekly lows, whilst remaining above the MAY 50% level.

The critical level for next week will be the Weekly 50% level @ $1502.70

The current price action could see GOLD move back towards the Weekly highs, and then reach the MAY highs in the last week of the month, if gold is still the flavour of the month.

However, never discount a delayed break of support in the 2nd week, if  Monday's open begins to 'sell' down from the Weekly 50% level.

if the latter occurs, then the trailing support levels are @ 1347-68 in June

Silver Monthly and Weekly

As noted in last Week's report (Bubble and expected reversal pattern)..

along with the report on Wednesday, the breakout of Support levels will likely see the trend continue down into next week's lows.

If that occurs, then I'd look for a reversal pattern back towards the 40.80 to 41.65:- RETEST THE BREAKOUT

if that occurs, then my view is that the trend will try and move back down towards lows in late MAY, which should then provide support and the next 'long' set-up in silver in JUNE

In the short-term, my view is down into the Weekly and MAY lows (Support & possible counter-trend move upwards)

Note;- if Monday moves upwards and begins the 3-day reversal pattern to start the Week, then from Thursday onwards we begin to look 'sell' set-ups and resistance levels for a push back down into the MAY lows.