Silver Cycles – The ‘Weaker Sister’; Monthly 2CR & Daily Sell Signals Reinforce Weekly Trend Signal Projecting Likely Plunge to Nov. ‘18 Lows.
Silver Cycles – The ‘Weaker Sister’; Monthly 2CR & Daily Sell Signals Reinforce Weekly Trend Signal Projecting Likely Plunge to Nov. ‘18 Lows.
03/02/19 Weekly Re-Lay: Gold & Silver powerfully validated the long-awaited cycle convergence when a multi-month peak was expected. They should see additional downside in March…
Gold & Silver peaked on Feb. 20, fulfilling a myriad of related cycles (55 – 59 week, 27 – 29 week, 13 – 14 week & 6 – 7 week), the largest of which have been in focus for over a year.
Validating those cycles (timing indicator), Gold peaked after surging to dual weekly LHR levels (extreme upside targets) at 1344.5 – 1345.2/GCJ while testing the monthly Raw SPR (1350.0/GCJ; the projected high for Feb. 2019) and overall monthly resistance at 1350.5 – 1363.4/GCJ – a textbook combination of timing and price projections for a multi-week (multi-month?) peak.
At the same time, Silver retested its high (16.20/SIH) while twice neutralizing its daily downtrend. More significantly (and more negatively), Silver was unable to turn its weekly trend up while spiking into Feb. 20 cycles and then quickly re-entered its year-opening trading range (a negative factor).
As emphasized at the time, that was as high as Silver should rally if it was going to fulfill expectations for a plunge back to [reserved for subscribers]…
As explained then, and reiterated on Feb. 23, the 3 – 6 month buy signals, from about 1190/GC (late-Aug. – late-Sept. ’18) & 14.40/SI (late-Nov. ’18), had run their course which is why the Feb. 20 INSIIDE Track Report recommended exiting a majority of them.
That ushered in a time for a proportional correction… Silver corroborated that by fulfilling the potential for a monthly 2 Close Reversal lower – that projected downside follow-through…
Gold & Silver peaked during the latest phase of their 6 – 7 week low-low-low-low-high-(high) AND 13 – 14 week low-low-low-low-high-(high) Cy
Silver’s daily trend pattern triggered a new sell signal at that time, which was quickly corroborated by its intra-month trend and daily 21 MAC action… On Feb. 27, Silver validated that by closing below its daily 21 Low MAC while turning the direction of that channel down and re-entering its daily downtrend.
That confirmed the cycle peak and increased the potential for a sharp drop that is still likely to take Gold down toward1270.0/GCJ… and Silver below xx.xxx/SI…
The XAU has also dropped sharply after attacking its monthly projected high/resistance (and descending monthly 21 High MAC) at 80.42 – 82.56. Its Feb. 20 high fulfilled similar weekly cycles as well as the latest phase of a 21 – 22 day low-high-high-high-(high) Cycl
That also fulfilled a primary wave objective, completing the third consecutive advance (since Sept. ’18) of 11 – 12.00 points (wave equivalence). That peak was/is expected to spur a sharp correction… The XAU did close lower on the month, increasing the potential for a drop to March’s HLS – at xx.xx.”
While all the metals and metals stocks project a multi-month peak at this time (Feb. 19 – 22, 2019), the 2 – 3 month outlook differs. Silver remains the ‘weaker sister’ and – based on its weekly trend pattern – should see a drop back to its Nov. ’18 low. It reinforced that outlook with a monthly 2 Close Reversal lower on Feb. 28 – a sell signal that projects 2 – 3 months of downside follow-through.
That could/should help pinpoint when the next multi-month low is most likely, as Gold should be bottoming at higher lows while Silver retests (or drops below) its Nov. ’18 lows.
How Long Could This Sell-off Last? Until Silver Drops to New Lows??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.