Gold Stocks Confirming Sell-off

Gold Stocks Confirming Sell-off.
Gold & Silver (Metal) Remain Strong…
But Nearing Upside Targets.

02/18/17 Weekly Re-Lay:

Gold & Silver remain strong with Silver rallying to new highs & turning its weekly trend up in the process.  It also created another weekly LHR near the same target range, this one at 18.820/SIH.

So, Silver now has three weekly LHRs, the weekly 21 Low MARC & the Nov. spike high converging at 18.820–19.12/SIH – with the greatest synergy at 18.820–18.860/SIH.

Gold maintains important resistance at 1251.3–1257.5/GCJ that incorporates the Oct. 2016 low (support turned into resistance) & a 50% rebound of its entire 3Q/4Q 2016 decline.  The coming week’s Raw SPRcorroborates that.

These ranges overlap monthly resistance as well.  If Gold & Silver are able to attain these targets, now that it is past mid-month, that could trigger follow-through buying into early-March – the next phase of a ~4-month high-high cycle.

3–6 month & 6–12 month traders & investors could have entered new long positions in Silver (in mid-to-late Dec.) at an avg. of 16.300/SIH (15.800–16.750) and be holding these w/avg. open gains of about $8,600/contract.  Risk/exit if/when those futures generate a weekly close below 17.260/SIH.

The XAU remains in a weekly uptrend but turned its daily trend down after rallying into intermediate cycle highs – surrounding Feb. 9–11th – while attacking its weekly 21 High MARC at 97.33/XAU.  That projected an intermediate peak, which has now been confirmed.

This daily trend reversal adds significance (and focus) to the 9–10 week cycle between lows (8 of them) that has remained constant since Sept. 2015.  Another low is expected from the next phase…The daily equivalent of recent phases, when it hovered around 10 weeks, pinpoints Feb. 28–March 3rd.)

So, this Index could see additional selling into the coming week but would not signal a near-term breakdown until a daily close below 90.13/XAU.


Gold stocks confirm cyclic peak & divergence on Feb. 8–9th.  Multiple indicators & divergence project a sharp drop that could last into March 3rd.  Gold & Silver could spike to new rebound highs in the interim.  See Weekly Re-Lay & INSIIDE Track for additional details.