Gold, Silver & XAU Signal Multi-Week Top
Gold, Silver & XAU Signal Multi-Week Top;
XAU Hints at Longer Pullback…
Could Coincide with Stock Market Sell-off.
01/27/18 Weekly Re-Lay:
“Gold, Silver & the XAU fulfilled 1 – 2 month upside price targets and could enter a multi-week corrective phase…
Gold & Silver surged to new highs with Silver finally reversing its weekly trend to up, even as it turned the direction of its weekly 21 MAC down. Both of those factors, combined with weekly cycles in Gold, could trigger a 1 – 3 week correction…with Gold attacking its 1 – 2 month upside objective at 1365.8/GCG (Sept. peak) as the XAU precisely fulfilled its 1 – 2 month upside target as well (92.57 – 93.06).
The attainment of these levels fulfills the early-Dec. buy signals and ushers in the time for a slightly longer-lasting peak (~2 – 4 weeks).
Gold remains in the center of the latest phase of an 18 – 21 week high-high cycle. The interesting thing is that this now overlaps a low-high cycle – culminating a 6 – 6.5-month Cycle Progression.
This past week’s high perpetuated an 18 – 20 week low-high-high-(high) Cycle Progression as well as a 27 – 29 week high-low-low-low-low-(high) Cycle Progression AND a 55 – 59 week low-low-low-(high) Cycle Progressionconnecting lows in early-Nov. ’14, late-Nov./early-Dec. ’15, late-Dec. ’16 & a potential high in mid-to-late-Jan. ’18.
If metals have just set a peak, they could see a correction into Feb. 6 – 7, the next phase of a ~60-degree/2-month high-high-low-low-low-(low) Cycle Progression in Silver that includes highs set on April 7 & June 6, followed by lows on Aug. 7, Oct. 6 & Dec. 7 (which was briefly violated on Dec. 12).
The XAU twice neutralized its daily uptrend and then gave an outside-day/2 Close Reversal buy signal on Jan. 22 – projecting a spike to new highs and up to its January extreme upside objectives at 93.04 (monthly LHR) – 93.06(monthly 21 High AMAC).
It then spiked to a new low, tested & held its weekly 21 Low MARC support, and gave another, overlapping outside-day/2 Close Reversal buy signal on Jan. 23 – powerfully reinforcing the first signal with a corresponding Double-Key Reversal.
It surged to new highs, fulfilling those signals and coming to within a few ticks of those January extreme targets while testing its daily LHR (another extreme target, on a shorter-term basis).
The XAU has now fulfilled all of its projected rally, producing an ideal scenario for a multi-week top, but it has not yet signaled a reversal lower. Until that occurs – with a daily close below 88.26/ XAU – the intermediate trend remains up.
Weekly cycles are projecting the next multi-week low in early-March, the next phase of a 90-degree/3-month high-low-(low) Cycle Progression and a 360-degree move from the early-March 2017 bottom. The weekly trend pattern should help determine where & how that low unfolds.
Intermediate (2 – 4 week & 1 – 3 month) traders should be out of all Gold stock and related long positions and looking to buy an intermediate pullback. Specific price levels should become clearer after the next week of trading… TRADING INVOLVES SUBSTANTIAL RISK!
Gold & Silver surged to key levels with Gold reaching its 1 – 2 month upside target while Silver spiked to the upper ranges of intermediate resistance while turning its weekly trend up (and weekly 21 MAC down).
The fulfillment of these upside objectives increases the potential for a 2 – 4 week period of consolidation to unfold.”
Gold fulfills multiple cycle highs as the XAU perfectly fulfills its 1 – 2 month outlook (since mid-Dec.) for surge to 92.87 – 93.0600/XAU in January. A multi-week peak is expected and could coincide with a reversal lower in the overall equity markets (DJTA has already signaled reversal lower) in line with 5-month Cycle Progression. That is reinforced by contrasting outlook for XAU (Gold stocks) as opposed to outlook for Gold.
See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.