E A Strong Rally Tomorrow?

Tonight’s election results and tomorrow’s response will likely determine where gold and silver are headed for the balance of the year. A strong rally tomorrow and we can probably take the head-and-shoulder topping pattern off the table for GDX​ and HUI. Whereas, a significant decline in miners and metals will boost the odds of an even further price drop (secondary 8-year low) into the first quarter of 2017.

Everything seems to be coming to a head! I plan to review the election results as the polls close and will update members before the open.

-US DOLLAR- The dollar closed above yesterday’s high and the 10-day EMA signaling a potential cycle low. If prices close higher yet again tomorrow, I’ll label 96.94 as an established cycle bottom.

(Click on image to enlarge)

7

-GOLD- Prices closed for the second session below the 10-day EMA and we are in the area where I would expect to see the common cycle low #1 form. We could get a wild spike higher similar to the rally of out the #1 low in June. I’m considering a buy stop limit on gold futures around the $1,300 level if it looks like prices may spike.

(Click on image to enlarge)

6

-SILVER- Silver is yet to close below the 10-day EMA (similar to common #1 in June). This relative strength could lead to another strong rally if prices don’t break substantially lower tomorrow.

(Click on image to enlarge)

5

-GDX- We should have a good idea which scenario (bullish or bearish) is playing out by the end of tomorrows close.

(Click on image to enlarge)

4

-GDXJ- Price has support at the blue trendline, 200-day MA and the previous low of $36.96. Prices closing below all of them will be a bearish signal supporting a further decline into the first quarter of 2017.

(Click on image to enlarge)

3

-SPY- Prices are approaching the trendline and tomorrow’s close is important to the near-term outlook. I’ll update in the morning before the open.

(Click on image to enlarge)

1 2
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Gary Tanashian 2 years ago Contributor's comment

The precious metals are going where they are going in the longer-term regardless of the election. They need to finish a well needed correction and then the fundamentals will re-emerge. The election is, IMO, noise for the PMs and most other markets.

GoldPredict 2 years ago Author's comment

Hi Gary - I agree that the destiny higher is sealed. My cycle work is at a critical turning point, and if prices are going to correct even further, we will know soon. What a fantastic opportunity to invest if they do!

Bill Johnson 2 years ago Member's comment

Everyone is assuming the election will be "over" by tomorrow. But #Trump made it clear that the only outcome he's willing accept is if he wins. We could be in for a long drawn out battle that will make the Gore/Bush uncertainty look like a walk in the park. Trump has already filed his first voter lawsuit in Nevada.

Craig Newman 2 years ago Member's comment

I'm banking on a rally.