Gold Fulfilling Nov. ‘14 (Intermediate) Cycle Lows
11/08/14 Weekly Re-Lay: “Gold & Silver plummeted into intermediate cycles on Nov. 3–7th with Gold reaching the lower end of its primary, 3–5 year downside target (1127.0–1132.0/GC) while Silver bottomed out just above its respective target (14.650/SI).
This led to outside-day/2 Close Reversals higher – on Friday – although Gold & Silver did not turn their intra-month trends up. That has initially fulfilled expectations for a spike low by Nov. 7th.
A low at this time would create a ~4-month high-high-(low) Cycle Progression, connecting the March 17th high & July 10th high with a potential low this past week…
…And that would create a couple of future expectations. First is that Gold & Silver would eventually make itback down to – and potentially below – those lows, by mid-2015. Second is that they could spike down to secondary 3–5 year downside targets, discussed previously.
In the interim, Gold still has an important price/time downside objective – at 1077.2–1088.2/GC in 4Q 2014 while Silver has a related level at 14.645–15.015/SI in 4Q 2014.
For now, Gold & Silver need to turn their intra-month trends up (daily closes above 1175.0/GCZ & 16.220/SIZ) and daily trends up (not possible until Nov. 11th, at the earliest) to signal that at least 1–2 week bottoms are in place.
The XAU fulfilled expectations for an overall decline into Nov. 4–6th and then reversed higher, neutralizing its daily downtrend while turning its intra-month trend up. A rally to 74.60–75.85 – where monthly resistance, the weekly trend point and a key level of support turned into resistance converge – is likely in the coming week(s).”
2–3 Month Bottom Forming; March ’15 = Next Cycle Low.
1030–1045/GC = Secondary, 3–5 Year Downside Target for Gold…
…And Primary Objective for 2015!