Hammer time on gold and silver

Both gold and silver formed hammers on Friday. These hammers formed right a fib support lines and in the case of GLD, there isaddtional support of a rising trendline connecting the prior high peaks before the breakout.

I personally was expecting a pullback to the 38.2 area and was hedged completely until I saw the strength coming back in on Friday.  I am now only lightly hedged.  I am watching the EMA 3/6 for a bullish crossover to give me more comfort.

I am already in all of my gold positions, but will lift my remaining hedges on that cross.  Silver is where I will get more aggressive.  PAAS showed nice strength on Friday, and I will buy this stock and AGQ, when AGQ hits my buy target in the 95-96 area.

A break of this support area will force me to rehedge and wait again for a buy signal.  I don't think we will need to wait long though, the market will render its verdict on the G-20 meeting next week.