Gold & Silver Trigger New Signals

Gold & Silver Trigger New Signals;
XAU Tests & Holds Resistance…
New Decline in Gold Stocks Likely.

05/20/17 Weekly Re-Lay:

 

Gold & Silver rallied sharply after pulling back & fulfilling the downside objectives for a multi-week decline… while bottoming on May 8–12th & precisely fulfilling a 20-week high-low-(low) Cycle Progression in Silver (related to the 19-week cycle in XAU).

While setting that low, Silver tested & held its intra-year support – as well as its ~2.50 pt. range-trading target (16.00/SI).  At the time, both Gold & Silver neutralized their weekly uptrends – setting the stage for a secondary low & reversal higher.  That was expected to prompt a new 1–3 week rally, which is well underway.

Gold remains in the strongest technical position, having remained in an intra-year uptrend and never giving a weekly close below 1224.4/GCM.  It maintained its weekly 21 MAC uptrend and also reinforced its weekly 8 MAC uptrend by rallying above 1256.4/GCM this past week…

On an intermediate basis, both metals [reserved for subscribers].

The XAU rallied since bottoming on May 4th, in line with its 19-week high-low-(low) Cycle Progression and a test of 2–3 month support.

It attacked its weekly LHR (intra-week extreme upside target) last week – a signal that portends a 1–2 month peak in the ensuing week(s)…The XAU attacked monthly resistance (87.79–88.61/XAU) & immediately reversed lower, increasing the potential for a multi-week peak near current levels.  It has twice neutralized its daily uptrend, since then.

If it can give a daily close below 83.58/XAU, the XAU would turn its daily trend down & reinforce the outlook for an overall decline into  [reserved for subscribers]…For now, the XAU is in a 1–2 month trading range and is likely to extend that consolidation for a couple more weeks (even if it trades back toward the extreme of that trading range)…

Gold & Silver rallied sharply with Gold twice neutralizing its daily downtrend but not yet turning it up.  It would take a daily close above 1265.0/GCM to do so and to escalate the current rebound to a higher-magnitude rally.

In contrast, Silver has turned its daily trend up and then entered a quick pullback.  That could soon yield a rally to new rebound highs.

Gold maintains a weekly cycle that could produce an ensuing high on  [reserved for subscribers]

 

Gold & Silver are reinforcing signals that project a surge into early-June… even as the XAU is validating the potential for a mid-May reversal lower.  Divergence continues to unfold and should remain in force into 3Q 2017.  The XAU maintains the potential for a drop to much lower levels in 2017!

See Weekly Re-Lay & INSIIDE Track for more specific expectations, targets & trading strategies.