Gold & Silver Poised for Selling into Early-Feb.; Platinum Tops; Copper Plunging.
01/25/20 Weekly Re-Lay: “Gold & Silver have corrected since surging into weekly cycles on Jan. 6 – 10 and could see a second 1 – 2 week decline with Silver likely leading the way…
Gold & Silver have congested after surging into Jan. 6 – 10, perpetuating multiple weekly Cycle Progressions and setting the stage for an intermediate peak. They set those peaks without turning the monthly trends up and have remained neutral (on an intra-month trend basis) ever since.
That peak allowed Gold to fulfill a 36-week low (Dec. 11 – 15, ‘17) – low (Aug. 18 – 22, ‘18) – low (Apr. 22 – 26, ‘19) – high (Jan. 6 – 10, ’20) Cycle Progression as well as an ~18-week/~4-month low-high-(high) Cycle Progression. It also came in the second week after Gold & Silver attacked their weekly LHRs.
The weekly 21 MACs are beginning to turn negative with Silver trading inside that channel as it provides the potential for a second sell-off into early-Feb. Combined with Silver’s inability to turn its weekly trend back up, and its failure to approach its Sept. ’19 peak, that increases the potential for more downside in the coming weeks.
Silver has set an intermediate low every 9 weeks (~2 months) since Nov. ’18 and the next phase projects a low for Feb. 3 – 7.
1 – 5 day Outlook:
Gold & Silver rebounded after Silver spiked to a new correction low after attacking and holding its daily HLS. Conversely, Silver just surged to its daily LHR on Friday, setting the stage for a secondary peak in the coming days.
Its recent rally had Silver testing and holding its declining weekly 21 High MAC and its ascending daily 21 High MAC as that daily 21 MAC has the best chance for flattening and turning lower in the coming days (as the inversely-correlated daily 21 MARC surges).
The XAU has rebounded after fulfilling expectations for a sharp drop into mid-Jan. It neutralized its intra-month downtrend while rallying back to the high of its daily 21 MAC on Jan. 24.
That channel has the best chance of flattening and/or turning down on Jan. 27 – 28, when the inversely-correlated daily 21 High MARC will surge to 104.68 and then to 107.12/XAU (on its way up to 108.25 on Jan. 31).
It did stretch this rally a day beyond the latest phase of a 19 – 22 calendar-day high (Oct. 9) – high (Oct. 31) – high (Nov. 20) – high (Dec. 12) – high (Jan. 2) – high (Jan. 21 – 23) Cycle Sequence.
The corresponding 13 – 16 trading-day high (Oct. 9) – high (Oct. 31) – high (Nov. 20) – high (Dec. 12) – high (Jan. 2) – high (Jan. 22 – 27) Cycle Sequence, however, would still be intact with a secondary peak set on Jan. 24/27…
Copper is validating its bearish potential after setting a divergent peak while failing to give a weekly close above its previous peak. That high fulfilled a 9 – 10 week low-high-(high) Cycle Progression (that projects an ensuing high in late-March) and weekly LHR indicator and ushered in the time for a 2 – 3 week decline.
That was/is expected trigger a sell-off into early-Feb. – perpetuating a ~60-degree/~2-month cycle. Copper set intermediate lows on June 5/7, Aug. 5/6, Oct. 1 and Dec. 3/4 – creating a ~2-month/~9-week low-low-low-low Cycle Progression. That cycle next comes into play on Feb. 3 – 7.
Reinforcing that is an intervening ~30-degree/~1-month low (Dec. 3) – low (Jan. 3) cycle that could help trigger a subsequent low around ~Feb. 3. From a price perspective, Copper did close below 2 – 4 week support (2.7600/HGH) – increasing the potential for an accelerated drop to 2.6200 – 2.6400/HGH.”
Gold, Silver & XAU are in corrective phases that could spur another round of selling into early-Feb. Copper could lead the latest round of selling. On a 2 – 3 month basis, Gold’s monthly LHR indicator continues to project overall rally into higher high in March 2020.
Will Early-Feb. Lows Spur Rally into March ‘20?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.