Silver Reaches Downside Extreme
03/11/17 Weekly Re-Lay:
“Gold & Silver have sold off sharply after Silver was able to stretch its advance into March 1st, setting its highest daily close on that day while fulfilling a ~4-month high-high cycle.
In doing so, Silver spiked above 18.500/SIK – perpetuating the 2.50-point trading ranges that have governed its movement for the past 2–3 years. In the past 12–18 months, that has provided the parameters for moves to and from ~13.50, ~16.00, ~18.50 & ~21.00/SI.
That peak projects focus to early-July for the next corresponding peak. In the interim, early-May remains a critical intermediate cycle low, in sync with related XAU cycles. (Conversely, that coincides with an intermediate cycle high in the US Dollar Index.)
Gold & Silver both neutralized their weekly uptrends, for the second time, as Silver dropped right to its weekly HLS(16.860/SIK; low was 16.855/SIK) to end the week. That portends a 1–2 month low…
The XAU dropped to new 2017 lows but narrowly escaped turning the intra-year trend down (due to Friday’s bounce).
The latest sell-off powerfully confirms intermediate cycle highs that converged on Feb. 8–10th and projected a new decline that could last into early-May 2017, the next phase of a 19-week high-low-(low) Cycle Progression.
The XAU turned its weekly trend back down, further validating that 2–3 month scenario while setting the stage for an initial bottom.”
Gold, Silver & Gold stocks have reached some critical downside objectives, signaling the impending end of the latest sell-off. A multi-week rebound should follow and ultimately take Gold & Silver to new 2017 highs even as the XAU & HUI should set divergent (lower) highs. The latest drop reinforces the outlook for increasing volatility in the coming months, including an expected bottom inearly-May & potential subsequent peak in early-July 2017. See Weekly Re-Lay & INSIIDE Track for additional details.