Silver Confirms Weakness
Silver Confirms Weakness;
Gold Projects Add’l Downside…
XAU Poised for Spike Lower.
12/02/17 Weekly Re-Lay:
“Gold & Silver are diverging after both metals rallied into Nov. 17 & set intermediate highs while perpetuating a 21-day low-low-(high) Cycle Progression.
Gold briefly spiked higher on Nov. 27, completing a ~30-degree rally from its Oct. 27 low and testing monthly resistance as well as weekly resistance & the weekly 21 High MAC.
Silver remained weaker & fulfilled the potential for a drop to a synergistic combination of weekly HLS levels – at 16.255 – 16.315/SIZ…
While dropping to new 3+-month lows, Silver turned its weekly trend down & retested its year-opening low. It retested the lowest point of the past 4 months, while reaching the aforementioned weekly extreme downside targets. All the while, Gold stayed in a 2-month trading range.
This could have farther-reaching ramifications for Silver as it joins Gold stocks in negatively diverging from Gold…
The XAU fulfilled its daily trend pattern by spiking to new lows, remaining weak and on track for a test of 77.50 – 78.50/XAU. The early-month peak reinforced this downside target range, creating an Intra-month PHHS (which becomes the monthly HHS in Dec.) at 77.71/XAU.
A multi-month low is still expected in Nov. (or Dec.) 2017 – the latest phase of an 11 – 12 month low-low-low Cycle Progression.
New weekly support reinforces the potential for a drop to ~78.20/XAU while monthly support leaves open the possibility for a spike below 77.50/XAU.
With the XAU remaining in a daily downtrend, another spike low is still possible. A low in either of the next two weeks would create a 21 – 22 week high-low-(low) Cycle Progression originating from the early-Feb. intra-year peak…
Gold & Silver suffered a new round of selling after Gold spiked to new multi-week highs but held weekly & monthly resistance as well as weekly 21 MAC & weekly trend resistance. Gold has dropped back to weekly 21 MAC support – while Silver dropped to new multi-month lows – and both could see additional spikes down to begin the week.”
Gold & Silver succumbing to negative factors with Silver turning weekly trend down. Both metals & XAU project additional downside on Dec. 4 – 8.
See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.