Gold Drops From 1840/GC Target; XAU Projects Drop to ~115 & Impending Low.
09/18/21 Weekly Re-Lay – Gold & Silver extended their declines after Gold had rebounded far enough (in early-Sept) to attack key range-trading resistance at 1840.0/GC.
That spurred a subsequent decline that had Gold test and hold its weekly HLS on Sept 10 (1784.9/GCZ – the extreme downside target for that week) – a pattern that portends a 1 – 2 month low in the ensuing 1 – 3 weeks.
As these metals move farther way from 3Q ’20 & May ’21 cycle highs, they are confirming multi-month, multi-quarter and multi-year cycle highs and validating long-term projections (since 2015 & 2018) for a multi-year peak in late-2020/early-2021…
The XAU rebounded in the first half of the week in sync with its daily trend pattern, testing and holding weekly resistance and its declining daily 21 High MAC as it bounced into mid-week…
The weekly HLS indicator (in XAU & HUI) also projects a multi-week low at any time. On a broader basis, recent action reinforces the outlook for an initial decline – from its May ’21 double top – to 110 – 115.0/XAU, where a powerful convergence of support remains.
The HUI also spiked to new lows but could see a bounce to declining resistance which is now near 261 – 264/HUI. It has entered the time when a consistent 29 – 31 week low (Nov ’18) – low (May ’19) – high (Dec ‘19/Jan ’20) – high (Aug ’20) – low (Mar ’21) – low (Sept 17 – Oct 1, ’21) Cycle Sequence portends a multi-month low… As a result, a multi-week low and reversal higher could take hold at any time.”
Gold & Silver are fulfilling analysis for another sell-off with the XAU & HUI signaling that a multi-week (likely multi-month) bottom should take hold by Oct 1, ‘21. Silver concurs and a 3 – 6 month (or longer) bottom at that time would fulfill multiple cycles and potentially set the low of a ‘c’ wave decline… ushering in the time for a new rally into 1Q ’22.
The XAU fulfilled major cycle highs in Aug ’20 and May ’21 and is on target for a drop toward ~115.00/XAU as part of this initial decline. That is where a 2 – 3 month (or longer) bottom is most likely.
How Does Recent Action Validate the Multi-Year Outlook?
What does this mean for the next multi-month cycle high in ~Feb. ’22??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.