Gold Projecting 2 – 3 Week Peak By Jan. 4; What is Likely for Late-Jan./early-Feb. Cycle High?

Gold Projecting 2 – 3 Week Peak By Jan. 4; What is Likely for Late-Jan./early-Feb. Cycle High?  

01/02/19 Weekly Re-Lay Alert: “Gold & Silver remain positive, reinforcing the multi-week buy signal triggered in Gold (around 1217.0/GCG) and the multi-month buy signal triggered in Silver, both in late-Nov.  Gold is attacking the upper extreme of its latest 2 – 4 week upside target (1284 – 1290/GCG) as Silver approaches its weekly 21 High MARC (15.725/SIH).

In the case of Gold, a 6 – 7 week low-low-low-low-(high) Cycle Progression projects a 2 – 3 week peak to take hold on Dec. 24 – Jan. 4 while a 10-week low-high-(high) Cycle Progression focuses on Dec. 31 – Jan. 4 for a peak.

With those cycles, as well as related daily cycles in Silver, portending initial peaks on Jan. 2 or 3 – price action is (as always) the key.

[Silver maintains a 10 – 11 trading day high (10/02) – high (10/16) – low (10/31) – low (11/14) – low (11/30/18) – low (12/14) Cycle Progression that projected a likely rally into Jan. 2 (+ or – 1 trading day).]

If/when either metal tests weekly resistance, it would identify the ideal price level from which a quick, 2 – 3 day pullback could ensue.

1 – 4 week traders could be long Feb. Comex Gold futures from an avg. of 1217.6 and holding 1/2 these long positions w/avg. open gains of ~$6,700/contract.  Move sell stops to [reserved for subscribers].  TRADING INVOLVES SUBSTANTIAL RISK!

1/2 of these positions should have been exited at 1284.5/GCG w/avg. gains of ~$6,600/contract.

The XAU remains off its highs after fulfilling analysis for an initial peak on Dec. 17 – 19.  It could remain in congestion for a few more weeks, potentially setting a secondary (higher) low on Jan. 14 – 18, the next phase of a ~9-week/~60-degree high-low-low-(low) Cycle Progression.

In and of itself, those two cycles do not preclude the XAU from rallying to new recent highs in the interim.  The Dec. 19 high has held for two weeks and the mid-Jan. cycle low just needs to be a pullback low (that is lower than at least 1 – 2 weeks of previous action).  So, it could spike higher before retracing into that low.

Price action is mixed with the daily trend remaining up as the XAU just pulled back to its ascending daily 21 High MAC and then reversed higher.  Normally, that would spur a rally to new recent highs.

With weekly resistance and the previous high all grouped at 71.50 – 72.22/XAU, that is the range that gold stocks would need to exceed in order to add to recent gains.  Today’s high attacked its daily LHR, so a 1 – 2 week peak (whether or not it is above 72.22/XAU) is likely in the coming days.

1 – 4 week traders could be holding long positions in XAU related vehicles (options, GDX, gold stocks, etc.) from when the XAU was trading at 65.30 down to 62.90.  Risk/exit those positions on [reserved for subscribers].  TRADING INVOLVES SUBSTANTIAL RISK!

Gold & Silver have fulfilled 2 – 4 week upside targets and are poised for 2 – 3 week highs on Jan. 2 – 4. followed by higher-magnitude peaks in late-Jan./early-Feb.  Gold stocks (XAU Index) are corroborating and should see their next intermediate low on Jan. 14 – 18 before a rally into late-Jan.

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.