Gold Trading 101: Sell-off into Early-Oct & to 1467/GCZ Fulfills Basic Wave Targets… Consolidation Expected. What Does Weekly 21 MAC Signify?
10/05/19 Weekly Re-Lay: “Gold & Silver plunged from the Sept. 24/25 cycle (and daily trend pattern) high into Oct. 1, with Gold dropping from 1540.2/GCZ to its initial downside wave target at ~1467.0/GCZ. It bottomed very near its ascending weekly 21 High MAC (1462.0/GCZ) as it fulfilled the primary downside target from its late-Aug./early-Sept. peak.
Gold’s low fulfilled a basic ‘c = a’ wave target (new decline = initial decline) while retesting a convergence of downside targets at 1462 – 1467/GCZ (weekly HLS, previous July 19 high – a pivotal level of ‘resistance turned into support’, etc.)…
Gold & Silver sold off from their Sept. 24/25 projected highs and dropped into Oct. 1 with Gold plunging precisely to a pivotal combination of intermediate downside targets and support levels as Silver dropped to weekly support and held.
They have since rebounded with Gold twice neutralizing its daily downtrend as it attacks its descending daily 21 High MAC (while Silver attacks its descending daily 21 Low MAC.)
It would take a daily close above 1525.8/GCZ to reverse that trend to up. That is also what it would take to turn the intra-month trend up. Silver is similar, needing a daily close above 17.845/SIZ to turn both trends up. If they fail to produce these closes, Gold & Silver could see new declines.
If Silver fails to close above 17.845/SIZ, in either of the next two days, it would likely extend its overall decline into mid-Oct. – perpetuating a 20 – 21 day high (July 3) – high (July 24) – high (Aug. 13) – high (Sept. 4) – high (Sept. 24) – (low; Oct. 14/15) Cycle Progression.
If the Oct. 3 high holds, it would perpetuate a shorter-term 7 trading-day cycle with a high-high-(low) Cycle Progression targeting Oct. 14.
The XAU has only neutralized its daily downtrend once but could turn its intra-month trend up with a daily close above 91.33. Until that occurs, there remains the potential for a drop to at least 86.00 – 86.80/XAU in the near term.
The XAU spiked down to its ascending weekly 21 High MAC, bottoming on Oct. 1 while fulfilling daily geometric cycles and perpetuating an 18 – 19 week low-low-low-(low) Cycle Progression. All of that sets the stage for a 1 – 2 month (or longer) bottom but price action must confirm… beginning with the daily trend turning up.”
Precious metals reinforce outlook for multi-month cycle peaks in late-Aug./early-Sept. ‘19 and substantial declines to follow (before bounce into early-Dec. ’19). Gold attacks 1467/GCZ – primary downside target for this phase of correction. Weekly trend pattern holds key.
How Does early-Sept. Peak Reinforce March 2020 Cycles?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.