Gold Projects Surge to New Highs; Silver Confirming MAJOR Bottom!
04/15/20 Weekly Re-Lay Alert – The Next Phase(s): “Gold & Silver maintain an upward trajectory and have surged since dropping sharply in early-March and fulfilling key objectives for an intermediate correction.
Leading into mid-March, Gold plunged right to its primary downside objective – testing and holding its 4th wave of lesser degree at ~1450.0/GC – even as Silver plummeted into major cycle lows.
Gold bottomed without turning its weekly trend down, projecting a rally back above the early-March highs. After it experienced two sharp rallies leading into March 25 (the ‘1’ and ‘3’ waves of a new impulse wave advance), Gold was projected to experience a pullback to 1570 – 1580/GCM leading into early-April – the ‘4’ wave of this developing, 5-wave rally.
It did just that, dropping back to 1576.0/GCM, and then entered wave ‘5’ of this latest advance. A couple wave relationships, as well as the intra-month uptrends and a 10 – 12 trading day low-high-high-high-(high) Cycle Progression, forecast a continue rally into mid-April – when an intermediate peak is most likely.
Silver has continued to surge since fulfilling a myriad of weekly, monthly & yearly cycles bottoming on March 16 – 20. That included the fulfillment of a 51-month high-low-(low) Cycle Progression in precious metals – connecting the Sept. ’11 peak and Dec. ’15 low. On a weekly basis, the March 16 – 20, 2020 low fulfilled:
— 70-week low (July 10 – 14, ’17) – low (Nov. 12 – 16, ’18) – low Cycle Progression.
— 14-week low (July 10 – 14, ’17) – high (Feb. 18 – 22, ’18) – low (Nov. 12 – 16, ’18) – high (Sept. 2 – 6, ’19) – low (Dec. 9 – 13, ’19) – low Cycle Sequence.
— The midpoint of the 28-week low-low-low-(low) Cycle Progression that helped pinpoint the Dec. 9 – 13, 2019 low.
— An overlapping 28-week high (Feb. ’19) – high (Sept. ’19) – low Cycle Progression.
— 7-week high-high-low-(low) Cycle Progression.
Silver is expected to set a secondary low on May 4 – 8, the next phase of the 7-week cycle that timed the March 16 – 20 low and previous lows in late-Jan. and early-Dec. That would perpetuate a 7-week high-high-low-low-(low) Cycle Progression.
There are other factors reinforcing the same potential…
Silver was/is expected to peak in mid-April. If the recent (April 14) high holds, and Silver matches the duration of its previous two declines in 2020 (21 & 23 days, respectively), it would spur a drop into May 5 – 7, precisely when that 7-week cycle comes back into play.
Longer-term traders and investors could have bought Silver or related stocks around 12.000/SIK on March 16 – 20 and should now risk a weekly close below 13.80/SIK (use the futures as the trigger point for the risk on this metals’ position).
If looking to trade around this position, some of these longs can now be liquidated and reestablished on May 4 – 8.
The XAU has surged since fulfilling analysis for a drop to attack support near 77.50/XAU, leading into early-April. At the time, its daily trend pattern reinforced the potential for a secondary low… on April 6 the XAUclosed above 87.31, turning its intra-month trend up and its 1 – 2 week trend back to positive and projecting a rally into mid-month. At the same time, it also closed above its daily 21 MAC, as that channel was in the process of turning back up.”
Gold, Silver & gold stocks (XAU Index) confirming multi-month cycle lows on March 16 – 20, expected to spur new advances into late-2020 and likely into May 2021. March 18 – 20 buy signal validated by recent action. Second buy signal setting up for May 4 – 8. Accelerated gains should follow.
Why Should Silver Gains Overtake Gold in 2020/2021?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.