Gold, Silver, XAU Prep for New Drop

Gold, Silver, XAU Prep for New Drop;
Sell-off Into Nov. 11–18th Projected.
Copper Surging into Nov. 7–11th Cycle.

11/05/16 Weekly Re-Lay: 

Gold & Silver extended their consolidation, but a final decline is expected to take metals lower in Nov…potential for Silver – and possibly Gold – to spike to new lows by/on Nov. 18th (when longer-term weekly cycles mature in Silver)…

Looking at the bigger picture – which has repeatedly called for a secondary bottom in 4Q 2016 (higher than the Dec. 2015 bottom but lower than any lows since the July 2016 peaks) – Gold triggered a corroborating signal…

By exceeding the magnitude of its two previous rebounds, Gold has triggered a 4-Shadow signal that increases the likelihood of an impending bottom…That usually leads to a final decline – and at least a retest of the latest low – before a more sustained advance takes hold.

Meanwhile, Silver matched the magnitude of its two previous rebounds (the 2 smallest of 3 total rebounds) while testing previous lows (support turned into resistance), the weekly 21 Low AMAC and the weekly LHR.  It tested these without turning its daily trend up, setting the stage for a new decline.  As long as Silver does NOT close above 18.750/SIZ, the daily trend pattern would project a drop to new lows…

The XAU has rebounded since fulfilling its early-Oct. (& 2–3 month) downside price objective by dropping to 78–83.00/XAU.  It, too, could see a high in the opening days of November that would also perpetuate a 6-week high-high-(high) Cycle Progression.

The XAU also matched the magnitude of its two previous rebounds – both in September – with a rally to 91.34–92.58/XAU.  That also made the two rallies in this overall rebound (Oct. 11–Oct. 25th & Oct. 27–present) of equal magnitude – multiple examples of textbook wave equivalence…

Copper continues to rally sharply after pulling back & twice neutralizing its weekly uptrend while holding above its Sept. low.  This surge is validating the 20–21 week low-low-low-(low) Cycle Progression that projected a bottom for Oct. 24–Nov. 4th.

And, it could be showing that Copper will lead the other metals in the next multi-month advance.  Dec. 9th/12th is the next intermediate (& geometric) cycle – linked to the June 9th & Sept. 12th lows.  In the meantime, an intermediate top is most likely on Nov. 7–11th, the latest phase of a 17-week high-high-(high) Cycle Progression.”

Gold, Silver & Gold Stocks are reinforcing expectations for another sharp drop into Nov. 11–18, 2016.  As explained before, that is more likely to culminate with a sharp, 3–4 day plummet as in each previous sell-off (since mid-2016 peak).  Gold stocks (XAU Index) could stretch out their decline and experience an overall drop from early-Nov. into Dec. 2016.

Copper continues to validate analysis for new bull market and is viewed as a harbinger of what to expect in 2017.  See publications for additional analysis & trading strategies.  Also, see 40-Year Cycle: Golden Years2016 – The Golden Year Reports for details on outlook for late-2016 into 2018 (and beyond).