Gold Poised for Early-Aug. Peak
07/30/16 Weekly Re-Lay:
“Gold & Silver are rebounding after Gold held just above decisive support around 1308.2/GCQ. That level incorporated the weekly trend neutral point, weekly SPS & the daily 21 Low MARC.
Gold also managed to keep its daily 21 MAC heading higher. If that is to remain the case, Gold would have to rally to new highs by mid-week. Gold cannot turn its daily trend back up until August 2nd, at the earliest, so the coming days could be decisive.
This trend pattern should be the primary filter in determining whether this is a ‘b’ wave bounce (which is still the prevailing assumption) – that will set a lower high and then turn back down – or the onset of another impulse wave higher.
Gold has set a 1–2 month peak in the first 3–4 trading days of the month – in 2 of the last 3 & 3 of the last 5 months. A peak in the coming week would perpetuate that ~30-degree cycle.
In the intervening & preceding months (Jan., Feb., Apr. & June ’16) Gold set its intra-month low on the first trading day of each month.
In other words, Gold has had a tendency (all year) to set one of its two intra-month extremes at the beginning of each month. That coincides with its pattern of 4–5 week cycles & waves discussed last week. (Silver has set its high or low in the first 2 trading days of each of the past 6 months.)
So, the new intra-month trend – combined with the daily trend – should give a good indication of what to expect from Gold in the weeks ahead.
Ideally (the more likely scenario), Gold would peak in the coming week and then sell off into late-August – the next phase of a ~90-degree cycle that has timed intermediate lows (in either Gold, Silver or both) in late-Nov. ’15, late-Feb. & late-May ’16…
Gold’s daily trend pattern – and a ~30-degree cycle in both metals – is increasing the potential for another 2–4 week peak in the coming days.”
Gold & Silver are steadily validating the outlook and ‘Roadmap’ for ‘2016- The Golden Year’. The action of 1Q–2Q 2016 was just a precursor – or a shadow of things to come (LATER) & should be viewed as a ‘yellow flag’ or ‘warning sign’ of what is likely to transpire in 2017–2018(potentially lasting into 2021).
The time for a Major, accelerated, blow-off advance in precious metals is approaching, BUT is NOT yet here. A unique pattern is developing that could soon signal a dynamic advance… So, stay tuned.