Mikula Forecasting Company

$XAU 30 Minute Chart Analysis

In this posting I am going to analyze the Gold/Silver index symbol $XAU after the market closed Nov 6, 2008. The chart below shows the 30 minute chart for $XAU. the first chart has three indicators add. First is the MarketWarrior indicator "AT_Planet Lines Top Bottom" which draws planet lines that start from a market top or bottom. To learn about this indicator see the book Gann's Scientific Methods Unveiled: Volume 2 on the web page http://www.mikulaforecasting.com/books/gsmuv2.htm. This indicator is drawing an upward sloping Sun angle starting from the bottom on Oct 24.

The second MarketWarrior indicator is named "Square of 9 Chapter 2". To learn more about this indicator see the book The Definitive Guide to Forecasting Using W.D.Gann's Square of Nine on the web page http://www.mikulaforecasting.com/books/squareofnine.htm. This indicator is drawing support and resistance lines.

The third MarketWarrior indicator is named "Dewey Cycle (Lock)" and is drawing a forecast cycle in the subgraph. Using these three indicators you can see the Sun angle cross the Square of 9 support price level at 77.00. When these two lines cross it correlates with a bottom in the Dewey cycle forecast. On the chart below I have drawn an oval to mark the price time target zone where this occurs and I would expect a bottom to be made.



On the next chart I have added the MarketWarrior Swing Projector. When trading with the Swing Projector you need to watch for the Warning symbol which is the large red triangle with a B inside. This is labeled on the chart below. This warning symbol indicates all the conditions for a pivot bottom have been met. When the Warning symbol occurs you should start watching for any indication of a Change In Trend (CIT).
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The final chart below shows a close up picture of this market analysis. The Dewey cycle forecast is making a bottom, the Swing Projector is showing the Warning symbol and the Sun angle and Square of 9 Chapter 2 indicators are crossing at 77.00. I expect this market to make a bottom in the price time target zone seen on the chart below.