How Silver is Confirming Projected Surge into Jan. 2 – 4!  Could Stock Market Bottom (Forecast for Dec. 26/27) Concur?

How Silver is Confirming Projected Surge into Jan. 2 – 4!  Could Stock Market Bottom (Forecast for Dec. 26/27) Concur?

12/26/18 Weekly Re-Lay Alert – Gold & Silver Accelerating: “Gold & Silver remain positive, reinforcing the multi-week buy signal triggered in Gold (around 1217.0/GCG) and the multi-month buy signal triggered in Silver, both in late-Nov.  Gold is attacking its December upside target (1284 – 1290/GCG) as Silver is breaking out to the upside.

In the case of Gold, a 6 – 7 week low-low-low-low-(high) Cycle Progression projects a new 2 – 3 week peak to take hold on Dec. 24 – Jan. 4 while a 10-week low-high-(high) Cycle Progression focuses on Dec. 31 – Jan. 4…

As described last week, the relationship between Gold & Silver was expected to shift a bit this week – with Silver showing signs it could see a decent runup into Jan. 2 – 4… That coincided with analysis for equity markets to bottom on Dec. 26 or 27 and enter a rebound (benefitting Silver more than Gold).

From a technical perspective, Silver had been stuck between 14.00 – 15.00/SI for over four months (since mid-Aug.).  It had traded sideways as Gold has steadily rallied during that ~4-month period.  That was expected to change this week and would be confirmed by a daily close above 15.06/SIH.

Silver just provided that breakout signal and should see a quick, accelerated surge to ~16.00/SIH… and potentially higher.

On a daily basis, the Dec. 14 low saw Silver perpetuating a 10 – 11 trading day high (10/02) – high (10/16) – low (10/31) – low (11/14) – low (11/30/18) – low (12/14 – 12/17/18) Cycle Progression – a cycle that then projected a likely rally into Jan. 2 (+ or – 1 trading day).

1 – 4 week traders could be long Feb. Comex Gold futures from 1218.3 down to 1216.8/GCG and holding these long positions w/avg. open gains of about $5,500/contract.  Move sell stops to 1251.8/GCG.  Exit 1/2 of these positions if/when Gold hits [reserved for subscribers].  TRADING INVOLVES SUBSTANTIAL RISK!.

The XAU remains off its highs after fulfilling analysis for an initial peak last week.  If it now works its way back toward the recent high, perhaps spiking up to 72.40 – 72.66, it would be in the ideal situation to then pull back to a higher low on Jan. 14 – 18, the next phase of a ~9-week/~60-degree high-low-low-(low) Cycle Progression.

1 – 4 week traders could have entered long positions in XAU related vehicles (options, GDX, gold stocks, etc.) when the XAU was trading at 65.30 down to 62.90.  Risk/exit those positions on [reserved for subscribers].  TRADING INVOLVES SUBSTANTIAL RISK!

Gold & Silver remain strong as Silver reinforces projections for surge into Jan. 2 – 4.  An overall stock market bottom today or tomorrow (Dec. 26/27) would fulfill multiple cycles and price targets and set stage for sharp equity rally (into Jan. 7 – 11), potentially benefitting Silver.  Gold remains on track to exceed 1290.0/GCG as part of this advance while Silver is increasing the potential for a surge toward 16.00/SI.  How would a stock market bottom (on Dec. 26 or 27) impact metals & equities outlooks for 2019?

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.