Silver Cycles – The ‘Weaker Sister’; Monthly 2CR Sell Signal Corroborating Weekly Trend Signal… Projects Potential Plunge to Nov. ‘18 Lows.
Silver Cycles – The ‘Weaker Sister’; Monthly 2CR Sell Signal Corroborating Weekly Trend Signal… Projects Potential Plunge to Nov. ‘18 Lows.
02/28/19 INSIIDE Track: Gold & Silver provided a textbook setup for a multi-month peak, leading into decisive cycle highs on Feb. 19 – 22. They fulfilled most or all of what had been expected from this initial 3 – 6 month uptrend and punctuated that with a divergent peak while fulfilling a myriad of weekly cycles.
Since early-2018, Gold has been forecast to set a (comparable) multi-month peak during the next phase of the 55 – 59 week cycle – in late-Feb./early-March 2019. That was the same cycle (along with its related 27 – 29 week cycle) that precisely timed the late-Jan. ’18 peak…
As its rally unfolded (and even before then), Gold reinforced those cycles with related 13 – 14 week and then 6 – 7 week cycles – both projected to set a 1 – 2 month peak on Feb. 19 – 26, 2019 (while converging with the 27 – 29 & 55 – 59 week cycles). They surged into Feb. 20, attacking weekly extreme upside targets and monthly projected highs.
That fulfilled the final criteria needed to usher in a much sharper correction that could easily see Gold drop to1270.0/GCJ and Silver drop below 15.000/SIH. (Based on Silver’s weekly trend pattern – which was unable to turn positive during the rally into Feb. 20 – it could even retest its Nov. ’18 low before the next bottom forms…On Feb. 25, both metals entered a very dangerous period… That overall period should powerfully validate the cycle highs just attained, the extreme upside targets reached, and expectations for a sharp correction to follow.
As illustrated in the Cycle Progression for Silver, its next low could wait until [reserved for subscribers]… The action leading into Feb. 20 triggered a new sell signal for 3 – 6 month & 6 – 12 month traders to exit more longs and look for a sharp correction…
3 – 6 month & 6 – 12 month traders & investors could have been in long Gold positions (futures, cash, ETFs, etc.) from ~1200.0 down to 1186/GC, since late-Sept., and be holding 1/3 of these w/avg. open gains of about $12,000/contract (in futures).
The first 1/3 should have been exited in late-Jan. around 1320/GCJ w/avg. gains of about $12,500/contract. The second 1/3 should have been exited on Feb. 21 w/avg. gains of about $13,000/contract. The final 1/3 should be exited on a weekly close below 1305.0/GCJ. If that is triggered on March 1, look to re-enter long positions below 1260.0/GCJ.
3 – 6 month & 6 – 12 month traders & investors could have entered long positions in Silver (futures, cash, ETFs, etc.) in late-Nov. at ~14.40 and be holding 1/3 of these w/avg. open gains of about $5,500/contract (in futures).
The first 1/3 should have been exited in late-Jan. around 15.90/SIH w/avg. gains of about $7,500/contract. The second 1/3 should have been exited on Feb. 21 around 15.90/SIH w/avg. gains of about $7,500/contract. Exit the final 1/3 on a weekly close below 15.445/SIH. If this is triggered on March 1, wait until a retest of the lows to re-enter longs.” TRADING INVOLVES SUBSTANTIAL RISK!
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 is now corroborating that with a monthly 2 Close Reversal lower – 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 Sharp of a Sell-off is Expected? Silver Could Drop to New Lows!
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.