Gold Stocks (XAU) Stretch to Extreme

Gold Stocks (XAU) Stretch to Extreme;
Remain Below Feb. ’17 Peak…
Poised for New Sharp Decline.


09/09/17 Weekly Re-Lay:


“The XAU has closed above its April high but remains in the 1 – 3 week time period – after attacking the combination of weekly LHRs (90.66–91.08) – when an intermediate high is most likely to take hold…As a result, the latest phase of a 60-degree/2-month low-low-low Cycle Progression is now poised to time a subsequent high on Sept. 8/11

The overlapping ~19-week high-low-low-(?) Cycle Progression. and an intervening 9 – 10 week low-low-(?) Cycle Progression could also invert & time a high although they leave open a small possibility to time a subsequent low if – and only if – the XAU saw a sharp enough drop into Sept. 15 – 22 to fulfill the potential for a multi-week low…

On a larger-scale basis, the XAU remains below its Feb. ’17 high which was well below its Aug. ’16 peak – so a larger range of consolidation remains intact. The monthly trend pattern reinforces that conclusion…”

Gold  stocks (XAU Index) sets stage for another sharp correction beginning on Sept. 11.  The initial decline could stretch into Sept. 18 – 22 and potentially reveal what to expect in 4Q 2017.  The action of Sept. 11 – 22 is CRITICAL with respect to the overall outlook for gold stocks.  See latest publications for updated analysis.

See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.