Gold Trading: Reactive Bounce Poised to Peak; Weekly Trend Portends New Decline to Follow! XAU Maintains Resilience.
11/02/19 Weekly Re-Lay: “Gold & Silver have rallied after Gold dropped right to intermediate downside objectives and support levels – retracing as far as it should if it was just a normal correction (and not a multi-month decline)… but no farther.
They are validating the weekly trend patterns in both metals. In mid-October, Gold turned its weekly trend down – a lagging and confirming indicator that usually times an initial 1 – 2 month low and ushers in a reactive, multi-week bounce.
It did that right as it was testing and holding a key level of 1 – 2 month support – its steeply-ascending weekly 21 High MAC. All these factors projected a multi-week bounce… However, Gold still needs a daily close above 1525.8/GCZ to turn its daily trend up…
The XAU continues to gain ground after bottoming in line with an 18 – 19 week low-low-low-(low) Cycle Progression while attacking its intermediate downside target at 86.00 – 86.80/XAU (low was 86.84/XAU).
While bottoming, the XAU twice neutralized its weekly uptrend and then reversed higher (without turning that weekly trend down). That signaled the onset of a new multi-week advance that should carry the XAU back up to its late-Aug. peak.
Ultimately, this rally could/should carry the XAU and metals higher into the first half of Dec. ’19 – the next phase of a consistent 13 – 14 week cycle in Gold and the XAU (and the midpoint of the latest 27 – 29 week cycle). On a near-term basis, the XAU was/is expected to rally into Nov. 4 – 8 and to ~98.00/XAU.”
Gold fulfills projections for ~3-week bounce from mid-Oct., increasing likelihood for peak and reversal lower in coming week. Daily & weekly trends remain negative in Gold but constructive in Gold/Silver Index. XAU provided divergent signals that argue for mid-Oct. low to hold longer – and spur a rally into early-Dec. and back up to late-Aug. peak.
What Could Weekly Trend Signal Trigger in Nov. 2019?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.