Why Metals Are Entering Cycle Highs… and Projecting Next Low for Nov. 8 – 13.
Why Metals Are Entering Cycle Highs… and Projecting Next Low for Nov. 8 – 13.
10/27/18 – Weekly Re-Lay: Gold & Silver remain in positive daily trends, increasing the likelihood for additional upside into Oct. 29 – Nov. 2… A rally into that time frame would represent a normal rebound in time (.500 – .618) and complete a ‘c = a’ rally in time (successive ~3-week rallies).
Both Gold and Silver have neutralized their weekly downtrends multiple times, increasing the focus on the coming 1 – 2 weeks… Markets often peak within a week of this scenario – whether or not they ultimately reverse their weekly trends…
That should spur some additional upside into month-end. If a peak is seen in the coming week, it could lead to a quick pullback into Nov. 8/9 – when daily cycles converge.
The XAU reinforced why it needs to be viewed independent of Gold, since the ‘stock’ part of ‘gold stock’ can often be a more influential factor. When the overall equity markets entered the second phase of their October declines, the XAU finally capitulated and sold off with them.
This came immediately after the XAU reached an important inflection point, having rallied right to its monthly LHR (the extreme upside target for October – at 71.46) while retesting its Dec. 2016 low (71.63) – that level of support-now-turned-into-resistance that was the minimum downside since early-2017.
The XAU’s downward reversal came right after it attacked its descending weekly 21 Low MAC – a combination of factors that created a multi-week peak. This also came right after the XAU turned its weekly trend up, the most likely time for an initial peak and subsequent 1 – 3 week correction.
The weekly trend remains up so the 1 – 3 month trend is still positive. The daily trend has turned neutral but would not turn down until a daily close below 64.66/XAU. That should be the determining factor for the coming 2 – 4 week trend.
A secondary low is likely on Nov. 9 – 13, the latest phase of a ~2-month/60-degree Cycle Progression.”
Gold & Silver are poised to enter the most likely week for an intermediate peak and reversal lower. The XAU is leading the way and has already sold off after rallying right to a critical level of ‘do-or-die’. It projects an overall correction into Nov. 8 – 13.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.