Gold & Silver Validate 3–6 Month Outlook
05/14/16 Weekly Re-Lay:
“Gold & Silver reversed lower after attacking their 3–6 month upside targets, fulfilling the latest phase of their 2016uptrends. The test of those ranges could spur a pullback into late-May. Traders should be holding partial Gold & Silver longs from mid-Dec., w/open gains, and have entered Gold put options… [Futures Trading Involves Substantial Risk]…
Gold & Silver reversed lower – immediately after attacking 3–6 month upside objectives (~1305–1315.0/GC & 18.040–18.140/SI) – ushering in what could be a lengthy period of volatile congestion (but not eliminating the potential for spike highs in June).
This price action further corroborates multi-year cycles, 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 into early-April.
With Dollar cycles turning back up in early-May – and the potential for global equities to accelerate lower into late-June – at least two potential negative (deflationary) factors could amplify this volatility into mid-2016.
Silver turned its daily trend down while Gold twice neutralized its daily uptrend – triggering a 1–3 day reactive bounce. Gold needs a daily close below 1258.3/GCM to turn its daily trend down and confirm the potential for an intermediate top.
The XAU turned its daily trend down and then provided the textbook 1–3 day reactive rebound. That should have created a peak by/on May 13th – but it would need to close back below 82.70/XAU to signal a new wave down.
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 14, 2016 Weekly Re-Lay for expounded trading strategy revolving around developing top at ~1305/GC & ~18.04/SI… and projections for multiple drops in May 2016.]
Traders could have [Refer to May 14, 2016 Weekly Re-Lay for specific trading strategy to capitalize on projected declines – in May 2016 – after Gold & Silver attacked their 3–6 month upside targets at ~1305/GC & ~18.04/SI… with uncanny precision]…
Gold’s daily trend is neutral while Silver’s is down – validating its 31–32 day low (Jan 29)–low (Feb. 29)–low (Apr. 1)–high (May 2) Cycle Progression that just timed the May 2nd peak and projects a subsequent high for June 2–3. In the interim, a low is likely around May xx–xxth.” [Specific price targets & cycle dates reserved for subscribers only. Refer to May 14, 2016 Weekly Re-Lay for discussion on a very consistent daily cycle in Gold that projects the next downturn around May 18th.]