Silver & Gold/Silver Stocks Confirming March 18 – 20 Buy Signals; Rallies into May ’21 Likely!
04/08/20 Weekly Re-Lay Alert: “Gold & Silver have rallied sharply from their mid-March plunges, at which time Gold dropped precisely to its primary downside objective – testing and holding its 4th wave of lesser degree, the Nov. ’19 low at ~1450.0/GC.
It did that without turning its weekly trend down – fulfilling the primary downside price projection for this decline and projecting a rally to new highs. Gold & Silver turned their intra-month trends up, reinforcing this latest rally and taking them to pivotal levels.
On an intermediate basis, Gold & Silver have decisive resistance/upside targets at [reserved for subscribers]… the 2 – 4 week trends remain up.
Longer-term traders and investors could have begun buying Silver or related stocks around 12.000/SIK on March 16 – 20 and should now risk a weekly close below 13.80/SIK (use the futures as the trigger point for the risk on this metals’ position).
The XAU followed its expected course of action in recent weeks, dropping to attack support near 77.50/ XAU while twice neutralizing its daily uptrend. That was expected to spur a quick rally into April 3/6.
The XAU fulfilled that… but then went a little farther – extending its advance by a day while turning its intra-month trend up.
While one day is not outside a normal range of error, the intra-month trend signal (and prevailing daily trend pattern) do show a little bit more strength from this rally – that could spur a retest of the March 26 high (93.26/ XAU, which nearly fulfilled the 93.50 – 94.50/XAU upside target from the March 18 low).
It also closed above its daily 21 MAC, corroborating this near-term strength.
All of these factors should spur at least a little more upside that could stretch into next week. That is also when a 48 – 53 day low (6/10) – low (8/01) – low (9/18) – low (11/11) – high (Jan. 2) – high (2/24) – high (April 13 – 17) Cycle Progression comes back into play… weekly cycles (a web of 4-week, 8-week & 16-week cycles) converge on April 20 – 24 – potentially as close as 1 trading day or as separated as 9 trading days – from the aforementioned daily cycle…
However, the weekly cycles converging on April 20 – 24 could almost as easily time a high since they are derived from a mix of previous cycles (highs and lows).
So, the XAU is in a bit of a ‘no-man’s-land’ – with short-term trends and indicators positive as weekly ones remain negative, creating near-term uncertainty. For now, it has to be viewed as positive – on a 2 – 4 week basis – until a daily close below 86.05/XAU.”
Gold, Silver & gold stocks (XAU Index) confirming multi-month cycle lows on March 16 – 20, expected to spur new advances into late-2020 and likely into May 2021. March 18 – 20 buy signal remains in force.
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Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.