Gold Stocks (XAU) Reinforce Outlook
09/24/16 Weekly Re-Lay:
“Gold & Silver have consolidated after fulfilling intermediate expectations for a sharp drop intolate-August – and down to 1–2 month targets – and an ensuing rally into early-Sept… that had Gold spiking up to a combination of weekly LHRs at 1347–1357.1/GCZ (extreme intra-week upside objectives).
At the time, both Gold & Silver attacked monthly resistance levels – a pattern that usually sets the high for that particular month…This past week’s repeat of that pattern – with Gold spiking right to its weekly LHR of 1346.3/GCZ – reinforces that potential.
By extending this latest phase of consolidation, Gold & Silver have made this a more complex correction & increased the potential for this correction to stretch into Nov. 2016.
Within that scenario, the ideal pattern would still involve an intervening low in early-Oct., the next phase of their ongoing ~30-degree cycle…to new 2–3 month lows…
The XAU is also consolidating after dropping into late-August and rebounding into daily cycles inearly-Sept…
The XAU did retest its early-Sept. high of 101.73 (and did spike a little higher, completing a symmetrical, a-b-c rebound) and then ushered in the potential for a new 1–2 week decline.
On an intermediate basis, another low is still likely in late-Sept./early-Oct. – the next phase of a 16–19 week high-high-low-low-low-(low) Cycle Progression. That would also perpetuate an over-arching, 36-week high-low-(low) Cycle Progression.
A test of 78–83.00/XAU is possible in that time frame… and is now reinforced by a ‘c’ = ‘a’ (or decline = decline) wave projection.”
Gold, Silver & XAU poised for next (sharp) drop into early-October – with Gold’s downside target for that period at 1260.0/GC. XAU target = 78–83.00. Silver’s ultimate downside target (could wait until Nov. 2016 to be reached) is ~16.00/SI. Next two weeks is another bearish phase.
See publications for additional analysis & trading strategies. Also, see 40-Year Cycle: Golden Years & 2016 – The Golden Year Reports for details on outlook for late-2016 into 2018 (and beyond).