Gold Poised for Plunge to 1450/GC Before Next Rally; Silver & XAU Project Drop into March 12 – 16.
03/07/20 Weekly Re-Lay: “Gold & Silver are diverging with Gold retesting its high and powerfully reinforcing the latest phase of it’s 54 – 59 week & 27 – 29 week cycles, after spiking down to and holding its weekly HLS (extreme downside target) on Feb. 28.
Gold already completed another 14 – 15 week rally, matching the duration of its May – Aug. ’19 & Nov. ’18 – Feb. ’19 advances (rally = rally = rally) as well as an intervening correction. As a result of all of these, Gold should not give a weekly close above 1691.7/GCJ in the immediate future.
Gold retested its 1684.0 – 1691.5/GCJ upside target as Silver could not even recover 50% of what it lost in late-Feb. That reinforces the prevailing divergence and ushers in the potential for another wave down in Silver – that could take it to 16.20/SIK – a new HHL objective…
This past week, Gold had set the stage for a low on Monday and a sharp rally into Friday.
That has now unfolded with Gold retesting its high and validating weekly cycles that peak in early-March, even as it provided a mirror image to the previous week. Meanwhile, Silver had a relatively anemic bounce (compared to Gold) and should now see a second sell-off into mid-month.
Silver has a 10 – 11 trading day low (Jan. 14) – low (Jan. 29) – low (Feb. 12) – low (Feb. 28) Cycle Progression that next comes into play on March 13/16 and should time another low (due to the steep descent of the latest two lows)…
The XAU rebounded strongly after its sharp, late-Feb. sell-off. That drop took the XAU right to its monthly HLS (extreme downside target for Feb. ‘20) and its weekly 21 MARC support at 90.59 – 91.13/XAU. That triggered a multi-day bounce with monthly resistance coming into play at 104.70 – 106.25/XAU…
Several key gold/silver stocks rebounded right to daily 21 MAC resistance without even neutralizing their daily downtrends. Along with the XAU, their inversely-correlated daily 21 MARCs are poised to enter a 2 – 3 week advance that should ultimately place negative pressure on current price levels… there are enough corroborating indicators to increase the likelihood of a new sell-off into mid-March.
That would also perpetuate a ~60-degree/ ~2-month low (Sept. 13/16) – low (Nov. 12) – low (Jan. 14) – low (March 12 – 16) Cycle Progression. The daily trend remains down and the daily 21 Low MAC only needs a drop below 101.26 – in current price action – to turn down. So, there are multiple factors arguing for another 3 – 5 day decline leading into mid-March.”
Gold, Silver & gold stocks (XAU Index) reinforcing overall outlook for 2020/2021 (see related Special Reports and The Bridge publications). Gold, Silver & XAU reached upside objectives in late-Feb. and ushered in a corrective period in which Gold should undergo a sharp correction to 1450.0/GC… in a relatively short period of time. Silver & XAU focused on March 12 – 16 for next decisive low.
Where Could Silver & XAU Bottom?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.