Gold & Silver Fulfilling Projected May 13/16 Lows.
05/18/22 Weekly Re-Lay Alert – “Gold & Silver fulfilled expectations for a ‘c’ wave decline after peaking on April 18/19 and fulfilling the latest phase of the ~6-week/41 – 42-day low-low-high-(high) Cycle Progression that projects a future high in late-May. The action of the coming weeks should help determine what to expect through 3Q ’22.
The April 18 highs reinforced the next phase of both the ~6-week and the overriding ~12-week cycles – converging in late-May. (Ideally, the intervening decline was to last 26 – 28 days – into May 13/16 – and the ensuing rebound would last 14 – 16 days, a relationship of .500 or .618. So far, that is what has transpired.)
From a price perspective, that ‘c’ wave decline has exceeded the magnitude of the ‘a’ wave decline – fulfilling its role as a form of ‘3’ wave. It also had Gold testing and initially holding its 2022 low.
From an intermediate timing perspective, Gold’s weekly HLS pattern reinforced cycles and projected a 1 – 2 month low by/on May 16 – 20. Silver’s weekly trend pattern concurred.
A low at this time would also fulfill wave (timing) relationships. In 2021 & 2022, Gold experienced three multi-month declines. Each lasted 9 – 10 weeks (as long as the current one bottoms on May 13 – 20).
The weekly trends could have a strong bearing on the level of highs expected in Aug/Sept ‘22 – when the next set of multi-month highs are expected.
In 2022, Gold & Silver were expected to set multi-month peaks in ~March & Aug/Sept ’22 with a sharp sell-off in between. They have seen the first peak and the ensuing sell-off. Now the focus begins to shift to 3Q ’22 – when the next peak is expected.
Similar to expectations for late-Feb – early-Mar ’22, and also for July/Aug ’20, the majority of these price advances often occur during the final weeks of the cycle – fulfilling the 90/10 Rule of Cycles. As a result, another accelerated advance is more likely in [reserved for subscribers]…
The XAU & HUI are similar and remain bearish after peaking in April while fulfilling a 29 – 31 week high-high-low-low-(high) Cycle Sequence – that has helped time most of the primary 3 – 6 month turning points of the past three years – and a ~10-month high (Aug ’20) – high (June ’21) – high (April ’22) Cycle Progression.
Both indexes dropped right back to their Jan ’22 lows (119.01/XAU & 236.37/HUI) – the decisive (make-or-break) level of intra-year trend support. They should not give weekly closes below those levels if any additional highs are to remain possible in 2022. If those levels hold, it would reinforce the potential for a second 2 – 3 month advance into 3Q ’22.
On a near-term basis, they need daily closes above 135.50/XAU and 264.50/HUI to provide the first signs of 1 – 2 week bottoms taking hold.”
Gold, Silver & XAU/HUI Indexes have fulfilled downside objectives in price and time, stemming from their March 8 & April 18/19 cycle highs. As a result, multi-month lows were/are expected on May 13/16… followed by the onset of new uptrends.
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Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.