Precious Metals ‘Casting Shadows Ahead’ to 3Q ’19 Cycle Peak; How Would That Corroborate Outlook into 2020? How High Could Metals Surge??
05/22/19 Weekly Re-Lay Alert – Casting Shadows Ahead: “There are diverse ways in which markets provide revealing clues about what is to come (see related quotes on page 2) – a type of precursor event…
Lochiel, Lochiel! beware of the day;
For, dark and despairing, my sight I may seal,
But man cannot cover what God would reveal;
‘Tis the sunset of life gives me mystical lore,
And coming events cast their shadows before.
Another way of ‘casting shadows before’ has been described numerous times before and it is the basis on which the LLH & HHL indicator was derived… and also represents range-trading movements like those frequently cited in Silver (where it moves in 2.50/SI ranges between 13.50 – 16.00/SI and then 16.00 – 18.50/SI, 18.50 – 21.00/SI, etc.).
The premise, though usually overlooked, is simple. It involves three principles:
2 – A 50% retracement is the most common and consistent retracement level in price/wave action.
3 – Markets will often identify future support or resistance with current turning points – even if they are opposite (a market might peak now at a pivotal level where it bottoms in the future, after breaking resistance) – casting their shadows before…
Gold & Silver have headed lower since Gold rallied into May 13/14 – when another multi-day high was forecast, the latest phase of a 12 trading-day low-high-high-(high) Cycle Progression. The next phase comes into play on ~May 31. Gold failed to turn its daily trend up on May 14, projecting a drop back to recent lows.
On a larger-scale basis, Silver has been projecting the same thing since the Feb. 20 peak. Both could be fulfilled at any time. If Gold retests 1267.3/GCM in the coming days, there would still be a chance for a rebound into the end of May.
The XAU is spiking down to the lower end of monthly support at 65.85 – 67.30 and testing weekly support at 65.63 – 66.38/XAU.”
Gold is reinforcing signs of a bottom and the onset of a new surge into 3Q 2019 (with the XAU projecting a corresponding advance into August 2019, from synergy of support near 66.00/XAU)… as Silver preparing for a major bottom and subsequent rally to new intra-year highs.
3 – 6 month Gold traders were recently triggered back into long positions near 1270.0/GC in preparation for a new, potentially accelerated rally into July 2019. Gold’s ~7-week (and 14 & 21-week) projects future multi-week highs on July 15 – 22, ’19 and Sept. 3 – 9, ‘19.
How Does Potential 3Q ’19 Peak Impact Overall Outlook into late-2020?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.