Gold and Silver formed weekly swing highs, and prices should be working their way down into the 6-Month low. The bull market breakouts in 1986 and 2002 are similar to the current setup. If the correlation advances, we should see gold break above the long-term trendline later this year, confirming a bull market.
Metals and Miners should drop a little further next week to test their respective trendlines. If the trendlines hold, we could see an intervening bounce out of a daily cycle low. The bounce, if we see one, should rollover and generate a failed daily cycle.
Mid-July to early August seems appropriate for the 6-Month low. Price objectives for gold range between $1,190 and $1,212. The 6-Month low could arrive sooner if prices collapse through their trendlines next week.
PREVIOUS BULL MARKET BREAKOUTS
-1986 BULL MARKET BREAKOUT- Prices probed the trendline several times. The breakout occurred 311-Weeks after the $873.00 8-Year cycle high. The 6-Month low before the breakout retraced 50%.
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