Gold & Silver Accelerating Declines
05/18/16 Weekly Re-Lay Alert: ‘Picking Up Momentum’
“Gold & Silver continue to fade after attacking 3–6 month upside objectives (~1305–1315.0/GC & 18.040–18.140/SI) – ushering in what could be a lengthy period of volatile congestion (but not eliminating the potential for spike highs in June). Those price levels remain the most significant resistance for 2Q 2016.
This price action further corroborates multi-year cycles, multi-month cycles projecting a 3–6 month surge following the mid-Dec. buy signals & multi-week cycles that projected the second advance to unfold in mid-to-late-April, leading into weekly cycle highs (in Gold) on April 25–29th… and daily cycle highs in Silver on May 2nd/3rd.
Similar to Stock Indices last week, Gold’s early-week spike above last week’s high set the stage for a weekly 2 Close Reversallower IF it can close the week below 1272.7/GCM.
That spike had Gold attacking its daily LHR as it tested weekly resistance – a textbook setup for an intra-week peak. Silver went right to its daily LHR (17.400/SIN) and also set a top. Gold still needs a daily close below 1258.3/GCM to turn its daily trend down and confirm an intermediate top… but a sharper decline is appearing more likely (and imminent).
The XAU remains in a corrective mode but still needs to close back below 82.70/XAU to signal a new wave down.
Traders could have [Refer to May 18, 2016 Weekly Re-Lay Alert for specific trading strategy related to May 6th sell signal & expectations for sharp drop to ~1190.0/GCM in the month of May… after Gold & Silver attacked their 3–6 month upside targets at1305–1315/GC & 18.00–18.50/SI and fulfilled their overall expectations for the first half of 2016.]