Gold & Silver Fulfill 3–6 Month Outlook
05/09/16 Weekly Re-Lay Alert: ‘Silver Leading Way Lower’
“Asian Indices could be close to breaking that aforementioned ‘eerie calm’ as China’s primary Indices dropped to their lowest lows in about two months. Following closely on their heels, Copper plummeted further and helped trigger a sharp drop in Silver – reinforcing its May 2nd cycle peak.
The strengthening Dollar contributed to that (metals) sell-off, but the Asian Indices are steadily validating what was reiterated last week – in the May 4, 2016 Weekly Re-Lay Alert – and are creeping ever nearer the edge of that abyss… [See May 4, 2016 Weekly Re-Lay Alert for details]:
The significance of this new decline – in Copper, Silver and also Gold – is increased by the fact that Silver & Gold reached their 3–6 month upside targets as they surged into late-April (April 25–29th was the convergence of weekly cycles in Gold) – leaving little upside potential for the coming weeks/months.
This objective in Gold has been the focus of analysis since February, and is decisive resistance, highlighted in the following excerpt:
That is the most intriguing objective for 2016, since 1307.8/GC was the 2015 peak. Gold would need to exceed that level to create the first inter-year higher high (year-to-year uptrend) since 2011.”
Silver reversed its daily trend to down, reinforcing its daily cycles that peaked on May 2nd and which portend the next 2–4 week high (possibly a lower high) for early-June…
A test of 16.410/SIN (weekly HLS) is likely in the near-term and could give way to a spike down to ~15.960/SIN – where several weekly & intra-month objectives align.
Gold is poised to drop to at least 1242.2/GCM but could spike as low as ~1190.0/GCM [Specific price targets & trading trigger points reserved for subscribers only.] in the coming weeks. It turned its intra-month trend back down – removing any remaining resilience (on a near-term basis) – and projecting further selling.
An initial drop into […] is likely – in line with the intra-month downtrends (Silver also turned its intra-month trend down, as did the XAU). The extent & structure of that decline should help determine […].
Gold & Silver have reversed lower – immediately after attacking multi-month objectives at ~1305–1315.0/GC & 18.040–18.140/SI – ushering in what could be a multi-month period of volatile congestion (this does not preclude the potential for spike highs in June)… before larger-degree cycles really kick in.
With Dollar cycles turning back up in early-May – and the potential for global equities to accelerate lower into late-June – at least two potential negative (deflationary) factors could amplify this volatility into mid-2016.
Traders could have [Refer to May 9, 2016 Weekly Re-Lay Alert for specific trading strategy to capitalize on projected declines – in May 2016 – after Gold & Silver attacked their 3–6 month upside targets at ~1305/GC & ~18.04/SI.]
3–6 month & 6–12 month traders and investors should be holding partial (about 50%) long positions in Gold & Silver from mid-Dec. (~1046–1076/GC & 13.62–13.88/SIH). Hold these until [Refer to May 9, 2016 Weekly Re-Lay Alert for expounded trading strategy revolving around developing top at ~1305/GC & ~18.04/SI… and projections for multiple drops in the coming weeks.]