Gold & Silver Poised to Trigger Confirming Signal
Gold & Silver Poised to Trigger Confirming Signal;
Overall Surge into Feb. 2018 Expected!
XAU (Gold Stocks) Could Reach Extreme Levels.
12/23/17 Weekly Re-Lay:
“Gold & Silver have initially bottomed after dropping into the first half of Dec. – the same time that Gold bottomed in 2015 & 2016, perpetuating an annual/360-degree cycle.
That potential was/is reinforced by diverse indicators – including the weekly trend patterns & the weekly HLS – and was corroborated as Gold bottomed just above year-opening support. Both metals turned their daily trends up, giving the first sign of an intermediate bottom.
Weekly closes above 1281.0/GCG & 16.470/ SIH would elevate this rally to the next higher degree. The monthly closes are also shaping up with some intriguing potential. If Gold can give a monthly close above 1276.7/GCG & Silver give a monthly close above 16.790/SIH, they would generate monthly 2 Close Reversals higher.
On an intermediate basis, Gold has the next phase of an ongoing 18 – 21 week cycle – that could produce a multi-week peak – coming into play between mid-Jan. & early-Feb.
If an advance in Gold stretches into the final week of that cycle (early-Feb.; consistent with monthly cycles, previously discussed in INSIIDE Track), it would also complete a 29-week low-low-(high) Cycle Progression & a 14-week drop/7-week advance (50%) sequence, as well.
On an intermediate basis, Silver could also still set an important high in Feb. 2018.
Since its bottom in Dec. ’15, Silver has had 5 significant advances – each lasting ~2 months (Dec. ’15 – Feb. ’16, Mar. – May ’16, May – Jly. ’16, Dec. ’16 – Feb. ’17 & Jly. – Sept. ’17).
A similar, ~2-month advance would take Silver higher into Feb. ’18 – when other monthly cycles converge. Based on wave comparisons & its recurring 2.50 point range, Silver could make it back up to ~18.50/SI.
A peak in Feb. 2018 would also complete successive ~7-month advances (Dec. ’15 – July ’16 & July ’17 – Feb. ’18) AND a ~9.5 month high (July ’16) – high (mid-April ’17) – high (Feb. 2018) Cycle Progression. A .618 rebound in time (12 months down/7 months up) would also peak in Feb. ’18.
The XAU fulfilled its 2 – 3 month outlook & 6 – 12 month outlook by dropping to new multi-month lows in Dec. 2017 – the latest phase of an 11 – 12 month low-low-low Cycle Progression – while testing & holding extreme support (its weekly HLS) at 75.77/XAU. It also fulfilled a 21 – 22 week high-low-(low) Cycle Progression originating from the early-Feb. intra-year peak.
For all intents & purposes, the XAU has traded sideways throughout 2017 – creating a type of ‘a-b-c’ decline from the early-Feb. high (Feb. ’17 high – July ’17 low – Sept. ’17 high – Dec. ’17 low), in which the ‘c’ wave decline nearly matched the magnitude of the preceding ‘a’ wave decline.
While that corrective wave was unfolding for ~10 months, the XAU exhibited some underlying resilience that just needed to wait until negative cycles had played out. Each decline produced a retest of support (and very brief spike low it) with very little downside follow-through.
Although the XAU spiked to new lows in mid-March, May, July & Dec., each time that spike low was only by 0.5 – 1.5 basis points and it never gave a weekly close below the preceding low (which would have signaled a negative breakdown).
As soon as weekly & monthly cycles matured, in early-Dec., that took the pressure off Gold stocks and allowed them to initially validate those signs of a slowly developing (secondary) bottom.
The Dec. 11 & 12 signal has been powerfully corroborated with the XAU neutralizing its weekly downtrend and providing the next-higher-degree signal of a reversal up.
Intermediate (2 – 4 week & 1 – 3 month) traders could have entered Gold stocks or related instruments last week and can now [reserved for subscribers].” TRADING INVOLVES SUBSTANTIAL RISK!…
As Gold, Silver & Gold stocks have come back to life, the other ‘anti-Dollar’ currency alternative – Bitcoin & crypto-currency – have yielded some significant ground. Bitcoin did this, yet again, after precisely fulfilling technical & cyclical analysis.
As observed before, Bitcoin has traded in surprisingly consistent technical & cyclical patterns – including consecutive almost-identical (duration) surges. Since the beginning of 2016, Bitcoin has experienced four primary multi-month advances. The first three were as follows:
— Jan. 16, 2016 – June 16, 2016
— Aug. 2, 2016 – Jan 4, 2017
— Jan. 11, 2017 – June 11, 2017
Each of those 3 previous rallies lasted precisely (or within 1 – 2 days of) 5 months in duration. The latest advance began on July 16. Another 5-month advance – a repetitive example of wave similarity – projected a rally into Dec. 16, 2017.
When did Bitcoin peak?
Dec. 16 was its highest daily close & Dec. 17 was its intraday spike high!
Since then, it dropped as much as $9,000 – shedding almost 50% in a matter of days – before rebounding sharply (as it usually does).
Is Gold’s new-found favor removing some of the luster from crypto-currency? Or are the contrasting moves just a coincidence? Time will tell. (Mid-Jan. 2018 is the next pivotal cycle.)
Gold, Silver & the XAU are poised to confirm the Dec. 11/12 buy signal & spur a sharp advance into Jan/Feb. 2018. Bitcoin is consolidating, allowing Gold to mount a sizeable rally. Watch Bitcoin cycles surrounding mid-Jan. 2018.
See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.