GOLD Primary and Weekly cycles
Gold has reached the 2011 Yearly target @ 1679 and stalled.
This is my top target for 2011, but as explained in the previous report, there are a number of breakout patterns that can continue to extend towards higher highs.
The first being the Weekly breakout, that could extend towards next week's highs @ 1693.50
As we saw the Weekly high @ 1644 form support on Thursday, after sellers appeared once 1279 was reached.
The 2nd Breakout pattern is the July breakout that could extend towards higher highs in October (target unknown as yet)
But for those who have read my book, the next pattern to capture the July breakout is a retest of the Weekly lows in the 3rd month of the Quarter (September)
Therefore 1279 has been reached and could act as a major resistance level for the rest of 2011.
However, there is a possibility that the trend continues upwards next week, but.....
it's the trailing Weekly lows that long term traders want to see retested *( Validated)
Silver Primary and Weekly cycles
Silver has struggled to rise higher than the 2011 Target @ 40.81
And with this week's price action, likely to continue down into the 3rd quarterly 50% level @ $36.80...
$36.80 is a major support zone.
Long term traders (holders of Longs) don't want to see the price of silver trading below this level.