Gold & Silver Enter Congestion
03/26/16 Weekly Re-Lay:
“Gold & Silver are entrenched in what was expected to be a volatile period – extending into late-April/early-May– with an important low expected on April 4–8th or April 11–15th. [See March 2016 INSIIDE Track for related charts & analysis.]…That volatile period anticipates wide swings between highs (often divergent, as were just seen on March 11th & 18th), lows (expected in April), and subsequent advances back toward the highs (second half of April)…
As observed in recent weeks, Gold & Silver continued to hover near their highs but could not generate any follow-through to the upside – even when new highs were set. That coincided with Gold fulfilling the timing aspect of the 3Q 2015 4-Shadow signal – that projected an initial, early-2016 advance of over 12 weeks in duration.
In early-March, Gold fulfilled that upside objective and ushered in the time for some consolidation prior to the next (expected) sustained advance. The middle half of June 2016 is shaping up as a higher probability for the next comparable peak… but more confirmation & clarification is needed.
The recent spike highs also represented textbook examples of ‘5th’ wave peaks (of an initial ‘1’ or ‘I’ wave higher) that should then yield the largest/longest pullback seen in 2016 (since it would be the next higher-degree corrective wave – compared to those seen in Jan. & Feb.)…
Since October, Silver has consistently sold off during the final 3–4 trading days of each month… so the coming week could perpetuate that ~30 degree pattern. Silver has just turned its daily 21 MAC down, corroborating that potential.
The March 31st monthly close could also play a key role in determining expectations & targets for early-April. Gold is already trading below its Feb. monthly close whereas Silver’s Feb. 29th close is at 14.918/SIK.”
Gold & Silver are validating projections for a 2–4 week period of consolidation following March highs. Wave structure pinpoints intermediate support (4th wave of lesser degree) around 1192/GC & 14.61/SI. Silver poised for new sell-off in late-March, leading into early-April cycle lows. New surge expected in April… potentially lasting (on balance) into June 2016.