Gold Projects 2–3 Month Surge
12/19/15 Weekly Re-Lay:
“Gold & Silver are slowly validating the potential for a bottom near current levels. The first validation of that scenario would come if they can give daily closes above 1088.3/GCG & 14.640/SIH in the coming week.
Gold maintains critical support – and its second, 3–5 year downside target (and the primary downside target for 2015) at 1033–1045.0/GC. That is where a Major bottom has been – and still is – considered most likely.
After testing its monthly HLS in Nov. – the intra-month extreme downside target for that month – Gold then gave a brief intra-month spike low in December, attacking that downside target…
Gold set its lowest weekly close on Nov. 27th – perpetuating a ~4-month/~17-week cycle that timed the Nov. ’14 low & subsequent lows in March, July & Nov. ‘15. If that low holds, Gold should experience another 2–3 month rally (and then see a secondary low in late-March ’16).
The weekly 21 MACs are flattening and opening up a brief window of opportunity when their negative influence will wane. While this type of setup does not guarantee a new rally, it removes a critical impediment to Gold being able to rally.
Bottom line: The stage is set for an initial rally in Gold & Silver… but the metals need to do their part and begin breaking above near-term resistance levels.
3–6 month & 6–12 month traders & investors could have been averaging into long positions in Gold & Silver since late-Nov. and should hold these until a weekly close below the current lows.” TRADING INVOLVES SUBSTANTIAL RISK.
Gold & Silver buy signals reinforcing cycle analysis for 2–3 month surge (from early-Dec. low), pullback into late-March ’16, and subsequent 2–3 month surge. 3–6 & 6–12 month buy signals in force and could support metals into mid-2016.