Gold & Silver Poised for Pullback
05/05/16 INSIIDE Track Intra-month Update:
“Gold & Silver have turned neutral after surging from intermediate cycle lows in the first half of April… and through April 19th, in fulfillment of Date of Aggression cycles. This further corroborates multi-year cycles projecting 2016 to be The Golden Year, multi-month cycles projecting a 3–6 month surge following the mid-Dec. buy signals & multi-week cycles that projected the second advance to take hold in April–June, after an intervening correction/consolidation in March & early-April.
Keep in mind, however, that this latest phase is likely to be even more volatile – with even wider swings – than the mid-Dec.–mid-March advances. One or two of those swings could be seen in May.
Silver – after nearly reaching its intra-month extreme upside objective in April – came within 1 cent of 18.040/SI, the level that needs to be exceeded to complete the largest advance since 3Q 2013. Gold came within 2 dollars of a comparable level at 1307.8/GC, attacking its initial upside target for this next phase – at ~1305–1315.0/GC.
Gold has turned its intra-month trend down but remains in its daily uptrend, while Silver has twice neutralized its daily uptrend but not turned its new intra-month trend down. It would take a daily close below 17.215/SIN to turn both trends down.
The XAU has twice neutralized its daily uptrend and needs a daily close below 82.70 to turn both the daily trend and the new intra-month trend down. That is what it would take to signal that at least a 1–2 week top is intact. Until that occurs, the trends remain up.”
Volatility expected to increase in coming months, with expected May decline & mid-June cycle high (after next surge). 3Q 2016could hold the biggest surprises for gold bugs.