Silver Poised to Accelerate into Projected June 11 – 15 Peak.
Silver Poised to Accelerate into Projected June 11 – 15 Peak.
06/09/18 Weekly Re-Lay:
“Gold & Silver are rebounding with Silver leading the way as both metals enter a 1 – 2 week period when an intermediate high is more likely. There are some signs, however, that Silver could culminate this ~6-week advance with some acceleration (90/10 Rule of Cycles?).
Silver has been in congestion for so long, it risks lulling investors into a sense of complacency. That is why it is important to review a few key points that could come back into focus at any time… and with little or no warning.
First, there is the fundamental aspect of this discussion (though that is not directly factored into trading since it does not provide timing or risk parameters)…
Silver is more of a commodity, typically doing best in an inflationary environment. In contrast, Gold is more of a safe haven and/or Dollar alternative vehicle.
Inflationary measures have been steadily gaining since Jan. 2016, even as Silver has languished. It is another market that adheres to the 90/10 Rule of Cycles in which the majority of its moves often come at the very end of a cycle. So, a sudden surge could take hold in the 1 – 3 weeks before a multi-month cycle portends a peak.
Second, and most important, is the weekly trend pattern. In contrast to Gold, Silver was unable to turn its weekly trend down during four months of testing support and spiking below the weekly trend reversal point…
Corroborating the weekly trend indicator, Silver’s weekly 21 MAC has been declining but the angle of descent keeps lessening (almost flat). At the same time, Silver has spent most of the past two months closing in or above this channel…
A descending trendline has connected most of the intervening highs. That trendline now resides around 17.20/SIN. So, if/when Silver can give a weekly close above 17.20/SIN, it would be primed to see an immediate surge back toward xx.xx/SIN.
Finally, there is the daily trend and daily 21 MAC. Silver needs a daily close above 16.865/SIN to turn its daily trend up but has been trading above its now-ascending daily 21 MAC.
On Friday, it pulled back to test the daily 21 High MAC (resistance turned into support) and closed above that level. That places it in the prime position to see an accelerated rally in the coming week.
1 – 3 month traders could have entered long positions… Exit these if/when [reserved for subscribers]…
Gold & Silver are rebounding and now enter a decisive 3 – 5 day period…”
Gold, Silver & Gold/Silver Index (XAU) steadily rallying into the June 11 – 15 intermediate cycle peak. That is the most likely time for another multi-week peak & reversal lower (corroborated by Gold’s bearish weekly trend pattern). Silver is poised to accelerate into that peak and could match the duration of its Dec./Jan. rally with an advance into ~June 14 (June 14 is also the exact date of the 20-week cycle from the Jan. 25 peak – a cycle that has been governing Gold & Silver) while Gold is expected to set a lower high at that time. 1312.6/GCQ remains Gold’s first key level of resistance. See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.