Gold & Silver Fulfill 6-Week & 12-Week Cycles; Consolidation Could Follow.
06/04/22 Weekly Re-Lay – “Gold & Silver pulled back after reversing their daily trends up as they spiked higher into this past week, the latest phases of corresponding ~6-week & ~12-week high-high-(high) Cycle Progressions.
In the case of the 6-week cycle, this past week’s high perpetuated a ~6-week low-low-low-high-high-(high) Cycle Progression… Gold & Silver turned their daily trends up and did extend these initial rallies into June 3, fulfilling multiple weekly cycles. In order to elevate this advance and signal a higher-magnitude rally, they would need to turn their intra-month trends up with daily closes above 1878.6/GCQ & 22.54/SIN.
The daily 21 MACs could also play a key role in the coming week. So far, Gold & Silver have followed a textbook sequence if a bottom is forming. They rallied and closed above their declining daily 21 Low MACs for the first time since April 20. They then quickly reached their declining 21 High MACs and were initially repelled.
That led to sell-offs back to their daily 21 Low MACs, which lent support and prompted rallies back to – and above – the 21 High MACs. They have pulled back and would need to again hold the now-flattening daily 21 Low MACs and ideally begin a new rally as those 21 MACs were reversing higher.
With the inversely-correlated daily 21 MARCs now set to plunge – for the next 6 trading days – it provides the ideal time for the 21 MACs to turn up. If Gold & Silver turn their intra-month trends up, they would also be closing above the daily 21 High MACs and likely turning them up in the process.
The XAU & HUI are slowly recovering after plunging right 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.
They have twice neutralized their daily downtrends while closing above their declining daily 21 High MACs. Similar to Gold & Silver, they need to turn their intra-month trends up – with daily closes above 137.40/XAU & 269.64/HUI – to elevate their current rebounds to a higher level…
They need to generate those daily closes soon – in the next 1 – 3 days – to confirm that (at least) 1 – 2 month lows are intact.
The XAU also fulfilled an intriguing parallel to 2020, where it dropped the same magnitude and same time (~3 weeks) as the Feb/Mar ’20 plunge. At the same time, it has initially bottomed in May ’22, similar to the intra-year trading swings (annual cycle) in recent years.”
Gold, Silver & XAU/HUI Indexes fulfilled downside objectives in mid-May and have produced ‘normal’ rebounds into early-June. If they are going to add to recent gains, however, they MUST turn their intra-month trends up in the coming days. With recent highs fulfilling ~6-week & ~12-week Cycle Progressions, it is doubly significant that recent highs be exceeded if a bottom is intact.
What Would Lack of Intra-Month Uptrend Signal Reveal?
How Does Gold/Silver Action Factor into March ’22 Cycle Highs??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.