Gold & Silver Bounce Likely
10/08/16 Weekly Re-Lay:
“Gold & Silver fulfilled projections for another sharp drop into early-Oct. & to key targets. Traders should have exited remaining longs (from mid-Dec.), w/avg. gains of about $19,000/contract (GC) & ~$18,000/contract (SI). [TRADING INVOLVES SUBSTANTIAL RISK; TRADING DISCLAIMER]
Gold & Silver have powerfully fulfilled the latest phase of the 3–6 month outlook, which called for another drop (the third since early-July) into early-October.
This latest decline was projected to reach ~1260.0/GCZ by/in early-October… on its way to an ultimate downside target – for the entire correction – around 1220.0/GC. In between the two is the monthly HLS at ~1238.0/GCZ (extreme intra-month downside objective for October).
Gold has fulfilled its early-October objective as Silver has broken below 18.50/SIZ and remains on track for an intermediate drop to ~16.00/SIZ (although that could wait until larger-degree cycles converge on Nov. 7–18, 2016)…
The 3–6 month outlook – stemming from the mid-2016 cycle high – remains for lower prices into Nov. 7–18, 2016.
3–6 month & 6–12 month traders and investors should have exited the final 25% of long positions in Gold & Silver (from mid-Dec. – around ~1046–1076/GC & 13.62–13.88/SI) on Friday’s close w/avg. gains of ~$19,000/contract in Gold & ~$18,000/contract in Silver. [TRADING INVOLVES SUBSTANTIAL RISK; TRADING DISCLAIMER]
The XAU fulfilled its early-Oct. downside objective (78–83.00/XAU) and turned its weekly trend down, as it plummeted into the recurrence of a 16–19 week high-high-low-low-low-(low) Cycle Progression AND an over-arching, ~36-week high-low-(low) Cycle Progression that projected an intermediate low by Oct. 7th.
That weekly trend reversal signals that more downside is likely, even though an intervening bounce could be seen. Until a daily close above 84.25/XAU, however, this Index is in a downtrend that should be respected…
Copper pulled back after turning its weekly trend up and confirming an intermediate bottom. That low precisely fulfilled projections for an intermediate (or larger) bottom on Sept. 12–16th – the culmination of a ~30-degree high-low-(low) Cycle Progression and corresponding 90, 180 & 360-degree cycles & Cycle Progressions.
The bottom that was set in the month of Sept. 2016 perpetuated an ~8-month high (May ’15)–low (Jan. ’16)–low (Sept. 2016) Cycle Progression.
From a price perspective, Copper bottomed near the high of its year-opening range (intra-year resistance turned into support), reinforcing the potential for a new wave up.
Early-Nov. 2016 is the convergence of multiple cycles & upside wave objectives, providing the best potential for the next multi-month peak…
Gold & Silver did spike lower in the early days of October, fulfilling cyclic & price analysis as Gold attacked its early-Oct. downside target of ~1260.0/GCZ.
Just as the 1308.0/GC target in late-August, this is just another stepping stone on Gold’s ultimate drop to at least 1220.0/GC (with Silver projected to reach at least 16.000/SI).
A brief bounce could be seen now…but the decline is expected to resume after [reserved for subscribers only].”
Gold & Silver fulfilled projections leading into early-October and are likely to bounce. Ultimately, another drop is expected to take them lower – into Nov. 7–18, 2016 and down to 1220.0/GCZ & ~16.000/SIZ. Copper has just fulfilled MAJOR cycle lows and could see surge into early-Nov. 2016. See publications for additional analysis & trading strategies. Also, see 40-Year Cycle: Golden Years & 2016 – The Golden YearReports for details on outlook for late-2016 into 2018 (and beyond).