Gold & Silver Poised for May Sell-offs
05/07/16 Weekly Re-Lay:
“Gold & Silver have initially attacked their 3–6 month upside targets, fulfilling the latest phase of their 2016 uptrends. Those ranges could spur a new pullback in May. Traders should be holding partial Gold & Silver longs from mid-Dec., w/open gains…
Gold & Silver turned neutral after surging from intermediate cycle lows in the first half of April… and through April 19th, in fulfillment of Date of Aggression cycles.
This further corroborates multi-year cycles projecting 2016 to be The Golden Year, multi-month cycles projecting a 3–6 month surge following the mid-Dec. buy signals & multi-week cycles that projected the second advance to take hold in mid-to-late-April, after an intervening correction/consolidation in March & early-April.
This latest phase is likely to be more volatile – with even wider swings – than the mid-Dec.–mid-March advances… Silver – after nearly reaching its intra-month extreme objective in April – came within 1 cent of 18.040/SI… 18.04–18.140/SIN is a resistance (& target) zone that carries over into May 2016.
Gold came within 2 dollars of a comparable level at 1307.8/GC (1309.0/GCM), attacking its initial upside target for this next phase – at ~1305–1315.0/GC. 1309.0/GCM is the high of Jan. 2015 – and all of 2015 – a pivotal, 1–2 year level.
The XAU twice neutralized its daily uptrend but needs a daily close below 82.70 to turn both the daily trend AND the new intra-month trend down. That is what it would take to signal that at least a 1–2 week top is intact…
3–6 month & 6–12 month traders and investors should be holding partial (about 50%) long positions in Gold & Silver from mid-Dec. (~1046–1076/GC & 13.62–13.88/SIH). Hold these until [Refer to May 7, 2016 Weekly Re-Lay for expounded trading strategy revolving around developing top at ~1305/GC & ~18.04/SI.]
Traders can buy June Comex Gold 1250 put options – as a partial hedge against these longs – at current levels… [Refer to May 7, 2016 Weekly Re-Lay for expounded specifics on this trading strategy, preparing for projected sell-offs in May.] Gold & Silver validating analysis for intermediate highs in early-May.