Gold Cycle Analysis: Consistent Bullish Outlook For Gold & Silver

This is an exclusive excerpt from The Financial Tap, who offers a FREE 15-day trial with complete access to the entire site.

This was exactly the pop out of Gold that I was looking for this week.  The Cycle timing and coiling action right under the $1,740 Swing Line was telling us to expect this move.  Almost every 1st Daily Cycle in a C-Wave has been Right Translated and gained more than 6%, so there was little reason to expect something different here.

I’ve studied so many Gold Cycle patterns and this one fits the mold of all other bullish Cycles.  Gold loves to pause near important pivots, like Swing low/high marks and prior Cycle low/top points.  When Gold is then ready to confirm its next move, it will often leap above/below these pivot points with a solid $20-$40 session.  That’s exactly what we witnessed today with a leap above $1,740.  That level had marked the Weekly Swing Low line and was also the last confirmation of a new Investor Cycle.  It had acted as resistance for a few weeks, but once it gave way Gold pushed higher with fairly little resistance.

I told all members to be patient on Wednesday as I was encouraged by Silver leading the Cycle higher.  It was still too early to dismiss this Cycle; it never pays to bet against the first 2 Daily Cycles.  So now that we have a confirmed Right Translated 1st Daily Cycle in play, we begin to focus on spotting a Daily Cycle Top.  From the Cycle Analyzer charts, we still have room, especially since the 2nd half of the Cycle has only just begun.  Typically a Cycle will top by Day 20, so we have another 7 trading sessions and some $75 of upside potential before reaching just average Cycle topping levels.  Once Gold/Silver get up into the overbought RSI levels on the Daily chart and begin riding the upper Bollinger bands, there is no telling how long they will surf the Cycle higher.  So many people fear a drop that they trade the early gains of the Cycle, only to miss the “juicy gains” of the 2ndhalf of a Cycle.

A quick cursory glance at the weekly chart to keep it all into perspective shows that we have plenty of upside air ahead for this Investor Cycle.  If we’re right about this being a C-Wave, then we should have a solid 10-12 Weeks before an IC top is expected.  So resist the urge to get “trade happy”, hold your positions through the Investor Cycle.

 

This as is an excerpt from this weekends update from The Financial Tap, which is dedicated to helping people learn to grow into successful investors by providing cycle research on multiple markets delivered twice weekly, as well as real time trade alerts to profit from market inefficiencies. They offer a FREE 15-day trial where you’ll receive complete access to the entire site. Coupon code (ZEN) saves you 15%.

Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing



Comments are closed.