Gold, Silver & XAU Attack Support
05/06/17 Weekly Re-Lay:
“Gold & Silver have sold off sharply after fulfilling all of the 2–4 week upside potential in mid-April. That was projected to trigger a sell-off into early-May and was quickly validated by Silver’s weekly Turn-Key Reversal & 2 Close Reversal sell signal on April 21st, projecting 2–3 weeks of additional downside to follow.
Gold was expected to drop to 1224–1230/GCM & initially looked like that could be seen as early as late-April (the same time Silver was expected to spike below 17.00/SI, its 1–2 week downside objective).
However, price action delayed that target into May & Gold finally confirmed that by turning its daily trend down and removing any remaining possibility for an intervening bounce.
Gold reinforced its target range with another weekly HLS (for this past week) – at 1224.0/GCM AND the monthly HLS (for May 2017) at 1226.6/GCM… levels that were attacked this past week.
At the same time, Silver is approaching its 2–4 week downside target at 16.000–16.090/SIN.
Based on a 20-week high-low-(low) Cycle Progression in Silver (similar to 19-week cycle in XAU), an additional spike low is still possible in the coming week. That also dovetails with Silver’s weekly trend pattern, which enters a decisive week…
The XAU continues to decline in fulfillment of its outlook for an overall drop into May 2017 (from intermediate cycle highs on Feb. 8–10th) and in reinforcement to the monthly 2 Close Reversal Combo lower it generated last month, after attacking its monthly LHR in early-April.
The XAU spiked to new intra-year lows as it tested monthly support, creating the potential for a minor bounce.”
Gold & Silver Index (XAU) fulfills 2–3 month outlook for overall drop into May 1–5th, the latest phase of a pivotal 19-week Cycle Progression. That should prompt a 1–3 week bounce. However, Gold stocks remain in the weakest technical structure and are expected to enter a new wave down after that rebound. Major downside target still substantially lower (see previous publications).
Weekly trend patterns in Gold & Silver project imminent bottom and multi-week rally. See Weekly Re-Lay & INSIIDE Track for more specific expectations, targets & trading strategies.