GOLD & SILVER Report 15th October 2011 Daily

Gold could climb upwards if it remains within the Weekly levels (white)...


However, my view is that the next 4 weeks will continue to flip-flop around Primary support until November...


Previous Weekly Report

GOLD Primary and Weekly cycles

Gold has continued to consolidate around the Primary support levels.

As we can see in the above chart, the Weekly highs have now caught up with the current price action in the Quarter

For Gold to continue higher, it will need to breakout of those highs and follow a double Weekly cycle pattern, which is a 2 week upward trend.

However, if GOLD decides it wants to continue to consolidate over the next 4-weeks, it will struggle and remain in a tight trading range.

The longer GOLD consolidates around Primary support, the more reason there is for Support to fail in the last month of the current quarter and move towards the Quarterly lows

SILVER Primary and Weekly cycles

Silver continues to consolidate, and I'm having a hard time seeing more gains during the current Primary cycle in 2011.

For that to happen it will need to break out of the weekly highs.

 GOLD traders, have a look at the price action in Silver, and see if you can see a similar pattern that's currently unfolding in GOLD.

if Gold follows the same 'bubble pattern' as Silver, then the last month of the current quarter is what you need to keep your eye on.