Looking For Signs Of A Bottom

The more I look at the charts, the more I believe we are closing in on a bottom this week. Prices are clearly due for an oversold bounce but if my interpretation of the October cycle distortion is correct; we are likely forming an intermediate low.

A new intermediate cycle would see prices rally for 4+ months likely exceeding their summer highs. In this scenario, miners would move back above their bearish necklines (195 level in HUI), within the allotted 10-trading days. Consequently, repealing the bearish price objectives discussed in the Weekend Newsletter.

I’ll advise members if/when I begin scaling into positions. If it looks like we are getting a bottom, I’ll begin by entering 25% of my positions. I’ll apply another 25% after we have a confirmed price swing. From there, I will wait to see if miners successfully retake their necklines. Once safely above them, I’ll enter the remaining 50%. See the charts for target zones.

-JAPANESE YEN- The Yen is 52-weeks into its annual cycle. Prices are finally below the 50-week EMA, and a bottom may arrive soon. The Yen often bottoms with gold.

(Click on image to enlarge)

-GOLD- I think gold will form a bottom this week. It will likely be an intermediate low and prices should rally into the spring of 2017. Note: A sharp drop below $1,200 will invalidate my theory.

(Click on image to enlarge)

-SILVER- Silver could sink a little more this week, but it should find a low in the box. A sharp move below $15.83 will invalidate my analysis.

(Click on image to enlarge)

-GDX- I think GDX came close to a low today. I will be looking for a retest of today’s low ($20.13) or prices could drop just below the $20.00 level to form a bottom.

(Click on image to enlarge)

-GDX- If we get a bottom this week (even temporary) prices should bounce to the neckline at a minimum. However, if my theory about the October cycle distortion is correct, a new intermediate cycle low will begin and prices should surge above the neckline, rallying for 4+ months. Note: If prices are unable to retake the neckline, I’ll step back out of the market.

(Click on image to enlarge)

-GDXJ- I will look for a retest of today’s low ($32.80), prices might break marginally below $32.80, but I think we will see a bottom this week.

(Click on image to enlarge)

I’m looking for prices to either retest today’s lows or make marginal new lows by Wednesday or Thursday. This is when I’ll begin accumulation my positions. If prices deviate from my current plan, I’ll come up with an alternate strategy