Gold, Silver & XAU Confirm Latest Signal
Gold, Silver & XAU Confirm Latest Signal;
Feb. 15 Daily Trend Sell Signal Evolving…
Renewed Drop into March 7 – 9 Likely.
02/24/18 Weekly Re-Lay:
“Gold & Silver are selling off after failing to turn their daily trends up during the rally into Feb. 16. That set the stage for a drop back to the Feb. 9 lows, which is now unfolding.
Based on those daily trend patterns, the Feb. 9 low is the near-term target. However, Silver is still hinting that it could continue lower and potentially drop back to its Dec. low around 15.60/SIH.
That was signaled when Silver turned its weekly 21 MAC down on Jan. 22 – 26, indicating a top. It quickly turned its intra-year trend down, reinforcing that signal and revealing new weakness.
There are now successive weekly HLS levels at 15.60 – 15.73/SIH, corroborating the possibility for a drop back to the Dec. ’17 low.
Gold is fighting to remain positive after dropping right to its retracement target & holding – a pivotal range of support & downside targets at 1309.3 – 1316.3/GCJ. Gold should NOT give a weekly close below 1309.3/GCJ if it is to maintain its 2 – 3 month uptrend.
The XAU resumed its decline after rebounding sharply enough to get within a few ticks of its weekly LHR – at 86.17/XAU – last week. It did that while neutralizing, but not turning up, its daily downtrend – also signaling a drop back to recent lows.
That corroborates everything that was signaled with the XAU’s rally to 92.94 into late-Jan. – fulfilling critical upside objectives in price and time.
Ultimately, this decline is expected to stretch into early-March before an intermediate low becomes more likely. That is the next phase of a 90-degree/3-month high-high-low-(low) Cycle Progression and a 360-degree move from the early-March 2017 bottom.
It is also the latest phase of an intervening & uncanny 30-degree cycle…
Since the Sept. 7 peak, the XAU has created a high (Sept. 7 – 9) – high (Oct. 7 – 9) – high (Nov. 7 – 9) – low (Dec. 7 – 9) – low (Jan. 7 – 9) – low (Feb. 7 – 9) Cycle Progression that projects the next multi-week low for March 7 – 9, 2018.
[That was all preceded by a reinforcing, high (Jun 7 – 9) – low (July 7 – 9) – low (Aug. 7 – 9) Cycle Progression in the three preceding months.]
The larger-degree turning points create an overriding, 90-degree/3-month high (Jun. 7 – 9) – high (Sept. 7 – 9) – low (Dec. 7 – 9) – low (Mar. 7 – 9) Cycle Progression. And that Progression was preceded by a low on March 7 – 9, 2017.
So, there is also a 360-degree/12-month low – low cycle at work – projecting a low on March 7 – 9, 2018. The two recent highs combined to create a corroborating high-high-(low) Cycle Progression targeting March 7 for a low.
Right now, a test of the Dec. low (75.65/XAU) is the primary (initial) downside target for that time frame. If that level is tested sooner, it would usher in the potential for a decline to its 1 – 2 year downside objective – a retest (and or drop below) [reserved for subscribers].
The XAU has a pair of weekly HLS levels around xx.xx, which could become a factor in the next 1 – 2 weeks.”
Gold stocks corroborating overall outlook for sharp decline from Jan. 25 – 26 peak & sell signals – into March 7 – 9. Weekly HLS targets are adding validity to overall downside target in XAU. A second stock market sell-off could coincide with the next XAU sell-off in – in late-Feb./early-March.
On a 1 – 2 year basis, XAU remains much weaker than Gold and could dive back towards its ultimate downside target as it drops into early-March.
See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.