Golden & Silver Geometry
08/10/16 Weekly Re-Lay Alert – “Golden (& Silver) Geometry”:
“Gold & Silver have been trading in very geometric moves throughout 2016… and even before. To restate/clarify… Geometric moves are those that occur in sync with the primary & secondary divisions of a circle (circle = cycle = 360 degrees).
This approach to time is derived from W.D. Gann’s work and the link between – or division of – time (how we measure & apportion it) and seasons.
The seasons divide a year (360 degrees) into 4, 90-degree quarters of a circle.
Similarly, a 3-month cycle (high-high or low-low) in a market spans a ‘season’ in time – a ~90-degree/ ~90-day movement in time.
Even those increments break down into ~30-degree (and ~60-degree) intervals, where markets will peak or bottom at the same time of month… in several successive months.
A textbook example can be seen in Gold & Silver… slightly more consistent in Silver.
Since early-March, Silver has set an intermediate (2–4 weeks or longer) high or low within 1–2 trading days of the start of the new month… every month.
That created lows around March 1st, April 1st & June 1st as well as highs around May 1st, July 1stand now August 1st.
Looking ahead, Sept. 1st (+ or – 1–2 trading days) should see a repeat of that cycle…
The more likely scenario (based on the greatest synergy of related cycles & indicators) would be for Gold & Silver to drop into late-August and then bounce to a lower high in early-Sept… before another drop (potentially lasting into early-October)…
Gold & Silver remain below their early-July highs, potentially entering a ‘c’ wave decline after completing what was perceived/expected to be a ‘b’ wave bounce. Both metals spiked to new rebound highs on the 2nd trading day of the new month – perpetuating a ~30-degree cycle – and then sold off.
The expected scenario is for Gold (& Silver) to sell off into late-August – the next phase of a ~90-degree cycle that has timed intermediate lows (in either Gold, Silver or both) in late-Nov. ’15, late-Feb. & late-May ’16…
Interestingly, both Gold & Silver rebounded to the low of their month-opening ranges (support turned into resistance) today, and were quickly hit with a new round of selling – closing below those ranges and reinforcing their intra-month downtrends. If they can close lower tomorrow, that should spur a new decline… [reserved for subscribers only]…
3–6 month & 6–12 month traders and investors should be holding partial long positions in Gold & Silver (~25%) from mid-Dec. (~1046–1076/GC & 13.62–13.88/SI).
Hold these until [reserved for subscribers only].
Those traders should have just exited another 25% of Silver long positions around 19.800/SIU –on Friday’s daily close below 19.990/SIU – w/avg. gains of about $30,000/contract. TRADING INVOLVES SUBSTANTIAL RISK. SEE TRADING DISCLAIMER.
Gold & Silver validating latest (intermediate) sell signals that should spur sharp drops into late-August and then again into early-October.