Gold Analysis And Alert: The Current Importance of Today, And Of The Next 2 Weeks Going Into September's Primary Option's Expiration

Gold is entering a critical technical period starting today, Friday August 30.

A Head's Up Alert is being issued today.

ANALYTICAL CONTEXT

Looking at today's annual echobackdate (FRIDAY 8/31, 2012), we saw a surge in prices on Friday a year ago.   From that surge we saw follow through the next week. that roughly equaled the Friday surge extension. In the week that followed we saw our final surge on Thursday that roughly equaled that same extension again,and proved to be our momentum top for the year. As was in 2011, options expiration in September in 2012 was our expiration high month.

Yesterday we closed on the annual echovector that has constituted our options expirations ladder steps up the last two months.  this annual echovector runs from the Monday after primary options expiration Saturday in July 2012 to July 2013  and again from August 2012 to August 2013 on our climb for lows each (so far) year.

This echovector is interestingly , also the same slope momentum as the 2 year echovector running from the September top in 2011 to this Weel's top and which further interestingly runs through this past Tuesday's weekly top echobackdate last year, 2012.  This indicates to me this is a power symmetry price momentum echovector and should be a key to our present analysis.

Should we not get the upside echo strength that occurred last year, a relative downward pivot in the annual echovechor, with a significant slope momentum differential will start to occur.  This will show itself quickly tomorrow, and only become more enhanced the next two weeks, should no echo uplift occur.  Non occurrence will put additional downside weight on gold prices.

Note also the failure in gold after Options expiration going into the next quarter in both 2011 and 2012.  This added weight only compounds downside technical weakness.

SHORT SUMMARY

1. Today is an important day regarding annual echovector strength and potential echovector downside pivoting if no echo-strength occurs.

2.  The next 2 weeks needs to see upside follow through or the annual echovector downside pivoting becomes dramatic.

3. The Thursday before September's primary options expiriation currently appears to be a primary as an apparent focus interest opportunity time-point  short regardless of follow through and price level these next 2 week within the 2 year perspective.

Silver Trader's may want to review their prior silver price history and/or silver charts for the potential of correlating applicable implications.