Gold & Silver Trigger Divergent Peak Sell Signals on May 4/5 Cycle High; Sharp Sell-off Imminent.
05-06-23 – “Gold & Silver fulfilled early-May ’23 cycle highs and should retrace…
Gold & Silver are reinforcing signs of an intermediate peak, particularly in Gold, after reaching 1 – 2 month upside price targets from the buy signals triggered in early-March ’23.
As part of that peak, Gold & Silver did retest their highs with both spiking right up to the 2 – 3 month upside targets (2060 – 2080/GCM & ~26.50/SIN) and monthly resistance levels at 2063 – 2084.7/GCM & 26.47 – 26.84/SIN.
That fulfilled the ‘window of opportunity for a quick spike up in the early days of May ‘23 – in line with 2, 3 & 4-month high-high cycles’ discussed last week. In doing so, it perpetuated daily cycles…
The latest phase of Gold’s 24-day low-high-high-(high) and 22-day low-low-high-(high) Cycle Progressions – that helped time the April 13 high – came back into play on May 4 – 8 and helped time the May 4 peak… with Gold & Silver failing to close above their mid-April highs despite retesting and/or spiking above them.
That also allowed them to fulfill a ~3-month low-high-(high) Cycle Progression in Gold and a ~4-month low-high-(high) Cycle Progression in Silver… and did this after fulfilling intra-month analysis for an intervening sell-off into late-April.
While that reinforces that an intermediate sell-off is likely in May ‘23, Gold and Silver are reinforcing signs that a 1 – 2 year uptrend is underway. Both bottomed in line with multi-year cycle lows in late-2022 and have rallied, on balance, ever since then.
After an intervening, early-year correction, Gold and Silver again surged after bottoming in line with Gold’s intermediate support and its correction target (~1820/GCJ) and Silver’s multi-month cycles.
The early-March ‘23 low fulfilled a ~6-month high (early-Mar ’22) – low (early-Sept ’22) – (low; early-March ’23) Cycle Progression and a precise 50% retracement in time (4 mos up into early-Jan ‘23, 2 mos down into early-Mar ‘23) in Silver…. One possibility (though not the only one) for that ~6-month cycle is to see [reserved for subscribers]…
In the interim, an intermediate sell-off could take them lower into late-May/early-June ’23 – ~3 months from the late-Feb/early-Mar ’23 lows and the midpoint of Silver’s ~6-month Cycle Progression.
Gold & Silver sold off into late-April, in line with their intra-month trend structure and daily cycles – and then spiked higher in early-May ‘23, fulfilling a myriad of cycles that have been in focus since early-March. As stated last week:
“…the 2 – 4 week and 1 – 2 month trends remain positive. That leaves a small window of opportunity for a quick spike up in the early days of May ‘23 – in line with 2, 3 & 4-month high-high cycles.
If that is going to happen, it is possible it involves a quick knee-jerk reaction to whatever Fed news emerges this week (both the interest rate move AND the statement that follows it)…”
That is what unfolded and now sets the stage for a larger-magnitude correction…
The XAU & HUI are retesting the highs set in mid-April – that matched the duration of their 2021/22 rallies (~28 weeks) while peaking ~12 months/~360 degrees from their mid-April ’22 multi-month highs.
The XAU also matched the price magnitude of that advance, reinforcing the likelihood for at least a 1 – 2 month peak. That was expected to spur a sell-off into late-April, which unfolded before a bounce into cycle highs in early-May ‘23.
As long as they do not close above their mid-April highs, a new sell-off should take hold and spur these indexes to move lower into late-May/early-June ‘23.”
Gold & Silver have reached multi-month upside targets while fulfilling ongoing projections for a second advance to begin in early-March ‘23 and last into May 3 – 5, ’23, when the next intermediate high was forecast. Precious Metals fulfilled this with uncanny precision and are now poised for sharp sell-offs in May ‘23.
The XAU & HUI are similar and projected a strong rally to new intra-year highs (into early-May ’23), with upside price targets now fulfilled. A retest of those targets was seen during early-May ’23 cycle highs and now ushers in the time for a multi-week drop.
How High Could Gold & Silver (&XAU) Reach in 2023?
Is a New MAJOR Bull Market Unfolding… or Just a Comparable Advance??
Will the Outlook for Bonds (Bottom in ~March ’23) & Interest Rates Concur?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.