Gold Triggers 4-Shadow Signal

Gold Triggers 4-Shadow Signal;
Increases Potential for Sharp Drop.
Final Low Possible in November.

11/02/16 Weekly Re-Lay Alert: 

Gold & Silver have rebounded since fulfilling analysis for a multi-month drop into early-October and down to at least ~1260.0/GCZ.  In doing so, Gold reversed its daily trend to up – showing that this is an intermediate rebound as opposed to just a minor one.

…that does NOT eliminate the potential for Silver – and possibly Gold – to spike to new lows by/on Nov. 18th(when longer-term weekly cycles mature in Silver; the corresponding 11-month monthly cycle – which is not as precise – could produce a low at any time in November).

Ideally, Gold & Silver would top by Nov. 4th and reverse lower without turning the new intra-month trends up.  (That dovetails with the XAU cycle high.)

Looking at the bigger picture – which has continually 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 has just triggered an important signal with regard to that…

By exceeding the magnitude of its two previous rebounds, Gold has triggered a 4-Shadow signal that increases the likelihood of an impending bottom.

Meanwhile, Silver has matched the magnitude of its two previous rebounds…Silver has 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.

If a peak is seen on Nov. 2–4th, Gold & Silver would perpetuate the geometric, 30-degree cycle that timed the early-July, early-Aug. & early-Sept. highs and the early-Oct. low… timing intra-month highs in 3 of the past 4 months.

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.”

Gold, Silver & Gold Stocks peaking – on a near-term basis – and poised to re-enter multi-month declines, expected to spur another sharp drop into Nov. 11–18, 2016.  Gold stocks (XAU Index) could stretch out their decline – as is often the case – and experience an overall drop from early-Nov. into Dec. 2016.

Copper continues to validate analysis for new bull market.  See publications for additional analysis & trading strategies.  Also, see 40-Year Cycle: Golden Years & 2016 – The Golden Year Reports for details on outlook for late-2016 into 2018 (and beyond).