Silver Poised for Intermediate Top in early-June; Most Bullish Phase Begins in Late-June ’20!
05/23/20 Weekly Re-Lay: “Gold & Silver remain above the lows set during the week of May 4 – 8 – the latest phase of a 7-week high-high-low-(low) Cycle Progression (that projects a future low for late-June).
Both metals bottomed on May 4 – 6 without turning their daily or intra-month trends down, ushering in the time for new 1 – 3 week rallies that have since unfolded. Silver argues for some additional upside while Gold is in limbo.
Silver tested and held a pair of weekly LHRs (extreme upside targets) on May 15, warning of an impending 1 – 2 month peak in the ensuing weeks. It surged to weekly resistance and the low of its year-opening range, a pivotal level on an intra-year basis, and closed the week below that.
Silver is now entering a recurring, geometric cycle that is linked to (but not as precise) an overlapping 13 – 14 week cycle. The final week of May and first week of June ’20 arrive 90 days/degrees from Silver’s late-Feb. low, 180 days/degrees from its late-Nov./early-Dec. ’19 low and 270 days/degrees from its late-Aug./early-Sept. ’19 peak.
That cycle continues back in time, including the late-May ’19 low (360 degrees and a 1-year cycle from the coming week), late-Feb. ’19 peak and late-Nov. ’18 low weekly close. On the flipside, focus remains on June 22 – 26 for the next intermediate low…
Silver tested and held daily trend support combined with other 3 – 5 day support – increasing the potential for a rally to new recent highs (in the coming week).
Gold, in contrast, could see a quick rally but might not exceed its May 18 spike high. Tuesday’s action should help clarify if additional highs are likely.
The XAU is in the process of completing the 5th wave (since May 1) of a short-term 5-wave advance from the mid-March low. At the same time, it could be setting up for a 1 – 2 month peak.
It has spiked above 130/XAU, nearing monthly resistance and a pair of wave objectives where each of the waves would be related to each other by the Golden Ratio or 2DGR – 1.272/.786) – at 135 – 136/XAU. Multiple monthly resistance levels – for the month of May ’20 – coincide with those targets…
This has also brought the Gold/Silver Index within a few points of its next major upside objective at ~135 – 140/XAU. That is the minimum upside target for this 2018 – 2020 rally – where it matches the magnitude of the 2016 rally.
Since this is a ‘C’ or ‘3’ wave rally, it is likely to (ultimately; by early-2021) exceed the magnitude of the ‘A’ or ‘1’ wave rally… so higher highs are likely as this bull market unfolds.”
Gold, Silver & XAU Index (Gold/Silver Index) poised for intermediate tops in late-May/early-June. Prepare for most bullish cycles to kick in by late-June (while reaffirming multi-month cycle lows that precisely timed Gold & Silver’s bottom on March 16 – 20). That is projected to spur new advances into late-2020 and likely into May 2021 with Silver gains likely exceeding Gold gains during that period, as Silver & metals stocks forecast to track closer with (bullish) overall stock market.
Why is 3Q ’20 Poised to Witness Sharpest Rallies of 2020?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.