Gold, Silver, XAU Hit Price Targets
02/20/16 Weekly Re-Lay: “Gold & Silver dropped sharply to begin the past week, after fulfilling decisive 4-Shadow upside objectives in price.
The multi-month advance – from the low & corresponding buy signals in mid-Dec. into last week – provided convincing validation to ongoing analysis that 2016 would be The Golden Year, beginning with a powerful surge in Gold & Silver.
Now, with Gold & Silver surging to monthly & weekly LHR levels (intra-month & intra-week extreme upside objectives) – and Silver completing a third successive, ~2-month rally of ~$2.40/oz each (w/out yet turning its weekly trend up) – it ushers in the time when some volatile consolidation could take hold.
That does not eliminate the potential for add’l new highs – particularly in Gold – but does reduce the potential for convincing follow-through to the upside, in the near term…
In order to take this advance to the next level, Gold would need to extend this advance to >$270/oz. (to make it the largest advance in over 4 years). Between Sept. 2011 & Oct. 2012, Gold experienced 3 successive rallies of near equal magnitude, each of which was right around $270/oz. A surge above ~1315.0/GC is needed to exceed those.
That is the most intriguing objective for 2016, since 1307.8/GC was the 2015 peak. Gold would need to exceed that level to create the first inter-year higher high (year-to-year uptrend) since 2011. That is likely to wait until later in 2016.
3–6 month & 6–12 month traders and investors should have entered long positions in Gold & Silver in mid-Dec. (at ~1046–1076/GC & 13.62–13.88/SIH) and should hold[reserved for subscribers only]…
The XAU completed a similar, higher-degree 4-Shadow signal, rallying more than the Nov. ’14–Jan. ’15 advance. It continues to exhibit strength after perpetuating a ~30-degree high (Sept. 18th)–high (Oct. 15/16th)–low (Nov. 17/18th)–low (Dec. 17th)–low (Jan. 19th) Cycle Progression… surging into the next phase of that cycle – on Feb. 19th.
A weekly close above 60.76/XAU was/is necessary to turn the weekly trend up and confirm a multi-month bottom. The XAU failed to do that on Friday, increasing the potential that a top is forming… at least for the near term…” TRADING INVOLVES SUBSTANTIAL RISK. See Hypothetical Trading Disclaimers.
Gold, Silver & XAU signal onset of brief consolidation. New highs needed in March 2016 (or later) to confirm 4-Shadow timing targets… and validate outlook for the remainder of 2016. ~1315.0/GC = Decisive objective for Gold, during next advance.