Gold & Silver Fulfilling Downside
Gold & Silver Fulfilling Downside;
Gold Stocks (XAU) Remain Weakest…
Sharp Drop into March 5 – 9 Projected.
02/07/18 Weekly Re-Lay Alert:
“Gold & Silver have dropped sharply after Gold reached its ~2-month upside target (1365.8/GCG, 1370.0/GCJ) & Silver turned its weekly 21 MAC down on Jan. 25 – 26. That was expected to trigger a 1 – 3 week correction, which is now in its second week, with daily cycles arguing for a low on Feb. 8 – 9.
Gold possesses a significant convergence of intermediate support & 1 – 2 week downside targets that were expected to be tested. That came into play at 1309.3 – 1316.3/GCJ – a range that encompasses 2 of the latest 3 weekly HLS levels, the 2017 closing level, the weekly 21 High AMAC, the monthly Raw SPS & the levels of previous highs in April, June & October – multi-month resistance turned into support.
Silver was expected to give a corresponding spike down to its monthly HLS – at 16.295/SIH. Both targets have just been tested, setting up the next 1 – 2 days as a pivotal time… The daily & intra-month trends are down, so price action would need to validate that potential.
The XAU has dropped sharply after perfectly fulfilling its January (and 1 – 2 month) upside target at 92.87 – 93.06. That completed the projected surge from early-Dec. and attained the upside objective for this latest advance – providing ‘the ideal scenario for a multi-week top’. It has since dropped [reserved for subscribers].
Though daily cycles could produce an initial 1 – 2 week low on Feb. 7 – 9, weekly cycles are still arguing for the next multi-week low in early-March.
That is the next phase of a 90-degree/3-month high-low-(low) Cycle Progression and a 360-degree move from the early-March 2017 bottom. With the monthly trend, weekly 21 MAC and intra-year trend all down, the XAU could head back toward 76.00 as it approaches March.”
Gold, Silver & Gold stocks (XAU) fulfilling Jan. 25 – 26 sell signals and forecast for initial sell-off into Feb. 9, with an overall decline (at least in XAU) into March 5 – 9 projected. The potential for that to ‘coincide with at least one significant sell-off in the overall equity markets’ is being fulfilled. A second stock market sell-off could be seen in early-March. On a 1 – 2 year basis, XAU remains much weaker than Gold and could dive back towards its ultimate downside target (lower than the 76.00/XAU target described above) as it drops into early-March.
See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.