This chart offers a good example of a TC pattern (Trend Continuation) in the June Gold.Â After touchedÂ the ascending median line on April 12th, Gold began a corrective pull back into the April 19th reversal date and posted a low at $1124.50, whereÂ Gold found supportÂ from the up-sloping lower parallel line and the 20- day SMA. Â The reversal date confirmed the low pivot and the beginnng of a new upward leg. The price swing between April 14 and April 19 formed the TC pattern and could also be used to make the future time and price porjection that identified May 17th as the future reversal date and put the reaction line target objective at the $1250.00 price level. Gold continued the rally off the April 19th reversal date and reached a high of $1249.70 on Friday, April 14, one day before the date, projected three weeks earlier. To learn more about this type of swing trading strategies using the â€œaction-reactionâ€ method with reversal dates you can read â€œUnlocking Wealth, Secret to Market Timing.
Silver has completed a 5-wave continution pattern that may mark the center of the longer-term downward cycle. The market is currently forming a bearish TR swing pattern and has retested the downward sloping parallel line as well as the 20- day SMA. A confirmation of the pattern will trigger the next downward slide to the descending median line or into the April 5 reversal swing date. I will updates and possible recommendations in the Traders Market Views.
March Sugar traded lower into Tuesday's (December 29, 2010) projected reversal swing date. This a a bullish pattern "setup" for a new upward swing in the Sugar. The market is now poised to rally towards the 29.25 target objective on or before the January 6th reversal swing date.
December Copper â€“ We banked a nice gain last week when the pattern suggested the Copper would undergo a correction back to the 20-day SMA. Now that the market has reached the downside objective and rebounded off the SMA and the upward sloping parallel line, it is time to look at the long side again. A confirmation of the new TC pattern will trigger the next bullish price swing towards the upper reaction line target objective, as it approaches the reversal swing day due on November 11.Â Â Buy Copper at 299.75, with a stop loss at 291.25.
December Lean Hogs â€“ Long from 54.30 â€“ last price @ 57.87â€“ After taking a day to rest and build energy, Hogs resumed the rally today and closed 117 higher. Fridayâ€™s small sell-off was held by support from the ascending median line. I think this will act as a springboard for a run to the reaction line target objective at 59.25.Â Â Hold long position, with the stop loss at 56.25 and target objective of 59.25.
December Copper â€“ Long from 288.75 â€“ last price @ 302.60 â€“ Copper futures closed lower and finished as an â€œinside dayâ€ after reaching a 13-month high of 305.75 on Wednesday. The rally paused on Thursday, due to a slight rebound in the U.S. Dollar. However, the cycle remains bullish into October 27th and portends a rally to the reaction line target at $325.00. - Hold the long position and move the stop loss to 289.75
December Gold â€“ The upward trend in Gold paused after the market reached the descending reaction on the predicted October 14th reversal swing day. Following the new high, Gold closed lower on the following two trading days, but managed to stage a slight rebound on Monday. It is very evident the overall trend is still bullish, but so far the market is meeting some stiff resistance on the retest of the reaction line. Mondayâ€™s higher close has form a possible short-term bearish swing pattern that could â€œsetupâ€ another sell signal for a drop to the $1,035.00 to $1,030.00 price range later this week.Â Iâ€™m waiting one more day to see if the pattern confirms before making a new recommendation
December Gold â€“The surging Gold market paused with the last two dayâ€™s entire trading ranges staying inside last Thursdayâ€™s trading range. The market is overdone, but the upward trend remains intact. Gold could encounter one more push to the sloping reaction target objective of $1.070.00, the October 14th reversal swing day.
December Silver â€“ Over $1.90 in four days! The rally was triggered on October 10th off the bullish TR swing pattern that had formed on the 20-day SMA. Silver reached a new high on Thursdayâ€”trading above the $17.69 high posted on September 17â€”one day before the projected reversal swing day. A new high on the reversal swing day could portend a profit-taking correction.
10/6/09 - 9:40 am - MST - Silver has surged 85 cent higher and reached the junction where the ascending centerline crosses the newly formed descending parallel resction line. This will typically act as a resistance level where a market will consolidate or form a new swing pattern. This is a good target level to close the long position (long from 16.65) at 17.39.