Gold & Silver on Track for More Upside
09/26/15 Weekly Re-Lay: “Gold & Silver are locked in a ~2-month congestion range after setting new multi-year lows in late-July and then rallying to their January (& year-opening) lows – support turned into resistance – where initial highs were expected.
They subsequently pulled back & confirmed their projected lows (Sept. 10/11th), after which they were expected to rally into Sept. 24th and perpetuate a ~30-degree low (July 24th)–high (Aug. 24th)–high (Sept. 24th) Cycle Progression. That cycle next comes into play on ~Oct. 24th – the same time that several other cycles converge.
The current advance is expected to extend into late-Oct. and Gold has given another positive signal to corroborate that outlook. It closed the week inside its weekly 21 MAC – an early step in a developing reversal pattern (of that channel).
It did this right after turning its daily 21 MAC back up, a signal that increases the potential for additional upside in the coming weeks.
Gold & Silver continue to mimic the action of Nov. & Dec. 2014, when both set intermediate lows – in perfect synchronicity with intermediate (Nov. ’14) cycles – and then rebounded.
During the ensuing pullback, Silver spiked to a new low (without ever giving a weekly close below its previous low) as Gold bottomed at higher levels – after a .786 retracement… just as these two metals have done in 3Q ’15.
That is VERY similar to what took place between July 24th–Aug. 26th, when Silver spiked to new lows without ever giving a weekly close below its July 24th low… and Gold bottomed at higher levels. And both have rallied since then.
In Dec. 2014, both metals then surged into Jan. 22nd. Could they now rally into late-Oct. and provide a close copy of that previous sequence?”
Gold & Silver are mimicking what was seen in Nov. ’14–Jan. ’15 and are expected to perpetuate this parallel by extending the current rally into Oct. 12–16th or Oct. 19–23rd. After it peaked in January, Gold entered a sharp, 7–8 week decline and set another low 4.5 months (19 weeks) after its Nov. ’14 low. If Gold suffers another 7–8 week decline – after a late-Oct. peak – it could produce another low… just in time to begin its projected 2016 surge.
The action of early-Oct. needs to confirm this scenario and project further upside… before a final decline. More & more, 2016 is shaping up to be the projected ‘Golden Year’. Gold’s 4-Shadow signal is corroborating that.