Gold's longer-term cycle bottoms in June
|Since 1969, the month of April has closed on the upside 52% of the time. But, there is no strong short-term planetary upswing until April 20th.
Below, we see that sum of the extraction of all short-term cycles. The next low is projected for the 14th of April. The average low for any April has been between the 14th and the 17th. The 15th has tended to be the most bearish day of the month.
Gold Short-Term Cycle
The conclusion is that gold is likely to sell off into the first week of April, and then enter a trading range likely from the 6th-7th into mid-month when the next rally is likely to begin. Gold is unlikely to be oversold by the 6th-7th and there are no strong indications of an up move on the days following that date.
The difficulty with the rally is two-fold. First, there remains overhead strong resistance at 1260-1270 and the 200-day M.A. at 1260. Second is that, longer-term, gold remains in a bear market due to projections of higher rates and a higher $. The longer-term cycle bottoms in June. The seasonal cycle bottoms in June-August. This will likely be the time for the major rally.
This is an excerpt from the monthly Cycles Research Early Warning Service, a monthly e-mail report that analyzes the trends in the US stock market, the bond market, and the gold market. There are stock and ETF recommendations and high-probability S&P turning points.
Cycles Research Early Warning Service has been ranked the top stock market timing service for 2016 by Timer Digest, an independent rating service in Ct., USA.
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