Gold & Silver Fulfill 2 – 4 Week Upside Targets; Poised for Pullback. What Should Traders Expect From Next Rally (into Late-Jan./early-Feb.)?
Gold & Silver Fulfill 2 – 4 Week Upside Targets; Poised for Pullback. What Should Traders Expect From Next Rally (into Late-Jan./early-Feb.)?
01/05/19 Weekly Re-Lay: “Gold & Silver surged with both fulfilling the majority of upside targets from their late-Nov. buy signals… and both rallied into Jan. 2 – 4, the convergence of Gold’s 6 – 7 week low-low-low-low-(high) Cycle Progression, Gold’s 10-week low-high-(high) Cycle Progression and Silver’s daily cycles.
Both tested and held weekly resistance, the price levels from which a quick, 2 – 3 day pullback was/is most likely. If that takes hold, there is even a chance that Gold & Silver could wait until Jan. 14 – 16 to set a pullback low. The daily & intra-month trend action could help clarify.
Both metals maintain the potential for some additional upside into late-Jan./early-Feb., with or without a significant setback in the interim…
Gold & Silver rallied sharply after pulling back into Dec. 14 and triggering new buy signals. They have fulfilled the upside potential – in price and time – for both the 1 – 2 week and the 2 – 4 week buy signals, ushering in the time for some congestion.
However, these metals would not neutralize their 1 – 2 week uptrends until daily closes below 1278.1/GCG & 15.490/SIH.
1 – 4 week traders could have been long Feb. Comex Gold futures from an avg. of 1217.6 and exited 1/2 at 1284.5/GCG w/avg. gains of ~$6,600/contract and 1/2 at 1278.8/GCG w/avg. gains of ~$6,100/contract.
The XAU remains in congestion but could see a spike high in the coming days and then a pullback into a secondary (higher) low on Jan. 14 – 18, the next phase of a ~9-week/~60-degree high-low-low-(low) Cycle Progression. The weekly 21 MARC is now down to 73.52/XAU, so that could be a revealing level in the coming week.
1 – 4 week traders could be holding long positions in XAU related vehicles (options, GDX, gold stocks, etc.) from when the XAU was trading at 65.30 down to 62.90. Risk/exit those positions on a daily close below [reserved for subscribers]. TRADING INVOLVES SUBSTANTIAL RISK!
Copper did drop to new lows in fulfillment of its weekly trend pattern and had the best chance for setting an intermediate low on Jan. 2 – 4, the convergence of a ~20-week low-low-(low) Cycle Progression, a 15-week high-high-(low) Cycle Progression and a ~60-degree/2-month low-low-low Cycle Progression.
It would take a daily close above 2.6750/HGH to provide the first sign of a reversal higher.”
Gold, Silver and Gold/Silver Index (XAU) are signaling 2 – 3 week peaks after fulfilling 2 – 4 week upside targets generated with the late-Nov. buy signals. Some consolidation, with a potential low on Jan. 14 – 18, should be seen before a rally into late-Jan./early-Feb. Copper is showing signs of a bottom and could see new advance take hold in January.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.