Gold/Silver Peak; Project Drop into March 2–6th!

Gold Projects Sharp Drop into March 2–6th; 
1168.3/GCJ & 15.545/SIH = Downside Targets.

02/07/15 Weekly Re-Lay: “Gold & Silver have signaled the completion of the projected rally from intermediate cycles that bottomed on Nov. 3–7th – when Gold reached its 3–5 year downside target (1127.0–1132.0/GC) & augured a strong rebound into January 2015.

That low created a ~4-month high-high-(low) Cycle Progression that next comes into play in early-March 2015… when a subsequent low has been expected.  As long as the recent Jan. 22nd high holds, a 50% retracement in time would also portend a low in early-March 2015.

After fulfilling intermediate analysis for a rally into Jan. 23rd and testing important resistance at that time (1298.4–1309.4/GCJ) – as Gold neutralized but failed to reverse up its weekly downtrend – Gold & Silver dropped to initial support and held for a couple days…Tuesday’s outside-day/2 Close Reversal lower (in Gold) gave a new 1–3 day sell signal – adding some negative pressure – but it was  Thursday’s daily 21 MAC action that signaled a slightly larger sell signal…

Friday’s action quickly validated that as it turned the daily trends down AND turned the intra-month trends down and both Gold & Silver closed below their daily 21 Low MACs.

In addition, Gold closed below its Dec. 9th high (a bearish Elliott Wave signal, confirming that the Nov.–Jan. rally was an ‘a-b-c’ upside correction and not any sort of 5-wave impulse advance) and exceeded the magnitude of its previous (Dec. 9Jan. 2) decline.  Gold also re-entered its weekly downtrend, providing the final confirmation of an intermediate top & larger-degree decline.

This should carry Gold & Silver lower – on balance – into early-March, when the next intermediate low is most likely.  And that is still expected to be a precursor to a more significant bottom in June/July 2015

Gold & Silver turned their daily & intra-month trends down, confirming the Jan. 20–23rd cycle high and signaling a larger-degree decline.  The January lows (1168.3/GCJ & 15.545/SIH) are decisive support for these declines.”

Gold & Silver are powerfully validating the outlook for renewed selling that should stretch into mid-2015.  The latest sell signals should spur an initial drop into ~March 6th – when Gold & Silver should ‘show their hand’ with respect to the ensuing months.  The next month is a CRITICAL time for all the markets, leading into the decisive period between March 2–6th and April 13–20th!