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Technical Analysis Trading Gold, Trading Silver/ analysis By Bill Downey providing key turning points & charts for investors and speculators in Precious Metals Trading, and Precious Metals Markets

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Gold Seasonal tendencies and cycles

20 Mar 2017 6:28 PM | Bill Downey (Administrator)

Short term Gold

Support for the week is 1217-1225 and 1205-1213 (depending when this week’s pullback takes place). If no pullback, Resistance to beat is 1235-1240. The overall trend remains up until we take out 11955. A close below 1195 and odds favor we are wrong about the uptrend remaining in place into April/May.

I’ve adjusted the 2017 channel to fit the price parameters. On a higher level overall, anything in between 1195-1237 is neutral zone. Whichever side gold chooses should set the pace into April/May.

The seasonal chart favors gold bottoming in March and a bounce back into April or May. While this is not the only reason, and this is an average of 20 years (1994-2014), that encompasses both bull and bear times in gold, it is something I do keep an eye on. During bear markets, gold fails to deliver in the 2nd half of the year. Sometimes, even in the 1st part of the year. During Bull markets, the 2nd half of the year is where we get big moves. You can see that the Seasonal does show a bit more lower potential into next week (where we have a medium term cycle). However, seasonal charts do not EMIT PRECISE turns, but on AVERAGE. The bottom line is gold should make a low in March and then attempt a rally into April or May.

Short Term Continued

SUMMARY

Odds still favor the overall trend is higher into next week.

Cycles

The last cycle turn was March 13th (plus or minus 72 hours) and the low was within the cycle window.

The rotation is back to Blue cycle lows and that’s what we want to see because blue cycle lows favor gold in a bullish position. The other thing to be aware of is the medium cycle is due this week - March 20th (plus or minus 2 weeks). The previous 3 medium term cycles had gold making its low (in one case a high) just after the blue cycle. Suffice to say that gold has NOW INVERTED to a blue cycle low and we’re expecting gold to bottom last week and begin a rally attempt. So far so good but because of the medium term cycle, I can’t rule out a pullback either towards 1207-1213 or 1218-1222 this week.

Cycles continued

Summary

Odds favor gold rallies into the next red cycle due March 28th (plus or minus 72 hours).

Technical Analysis :: Gold & Silver