Gold & Silver Accelerating…
01/30/16 Weekly Re-Lay: “Gold & Silver have begun to accelerate their advances, in line with previously-described daily cycles and this past weekend’s analysis in Silver – that is showing signs of turning a corner (to the upside). This has allowed Gold to reach its January upside price targets, just as Silver is bumping up against 2-month resistance.
As further reinforcement, Gold ended the week by turning its weekly trend up – allowing it to fulfill all of the key objectives for January. It also reached its monthly LHR(extreme intra-month upside objective), its weekly 21 High MAC and matched a ‘rally = rally’ objective… powerfully confirming the mid-Dec. buy signal.
Now that metals are entering the month of February, they have a new set of objectives and have increased the potential for further upside… and accelerated upside. The ideal scenario is that they…exceed the duration of each of the three intermediate rallies (Gold) since January 2014…
Silver is increasing the likelihood that it has turned the corner and is on an upward trajectory. As explained previously, Silver has been forming a kind of bullish wedge (descending triangle) since its Dec. 2014 low & Jan. 2015 rebound high.
It spiked to a (slight) new low in Dec. 2015 – 1 year or 360 degrees later – and completed an exact 50% time retracement of its entire bull market. Silver rallied from Nov. 2001 into April 2011 – a ~113-month advance. It then declined for ~56 months (56.5 months is 50%) into Dec. 2015.
That also equally divided its decline into a 28-month high (April 2011)–high (Aug. 2013)–low (Dec. 2015) Cycle Progression… while perpetuating a ~7-year low (4Q 2001)–low (4Q 2008)–low (4Q 2015) Cycle Progression.
The Dec. 2015 monthly close was also right on the .786 retracement level (13.81/SI) of the 2001–2011 advance… the farthest that any retracement should go – if it’s not heading to new lows. All of these factors argue that Silver is bouncing from the fulfillment of Major, multi-year cycles, retracement levels, wave objectives & support/downside targets.
As a result, it would not be surprising to see Silver surge to its monthly LHR in February – at 15.550/SIH. Silver needs a daily & weekly close above 14.640/SIH to give the next level of confirmation to a developing bottom.
3–6 month & 6–12 month traders and investors should have entered long positions in Gold & Silver in mid-Dec. (at ~1046–1076/GC & 13.62–13.88/SIH) and should hold them until a weekly close below the lows (1046.6/GCJ & 13.635/SIH.)
The XAU has begun to show signs of reversing higher, after perfectly fulfilling/ perpetuating a ~30-degree high (Sept. 18th)–high (Oct. 15/16th)–low (Nov. 17/18th)–low (Dec. 17th)–low (Jan. 19th) Cycle Progression & completing a ~90-degree decline from its Oct. peak.
It turned its daily trend up and now needs a weekly close above 50.00 to turn its intra-year trend up & confirm at least a 1–2 month bottom…
Gold & Silver are both in daily uptrends, but pulling back. There is a good argument that this pullback could end quickly and give way to a more accelerated advance. It would take daily closes above 1128.7/GCJ & 14.585/SIH to confirm.
1–4 week traders can buy April Comex Gold futures at 1114.5 down to 1097.5. Place sell stops at 1088.4/GCJ.
1–4 week traders can buy March Silver 14.750 call options at current levels and average into these down to 13.960/SIH. Risk/exit on two daily closes below 13.730/SIH.”…TRADING INVOLVES SUBSTANTIAL RISK.