Consolidation of grinding into precious metals has been frustrating. Gold is working on a B-wave triangle that is expected to break below $ 1900 within the next week or two. Our analysis remains on track for a minimum of 6 months and a subsequent buying opportunity by late September or early October.
Our gold cycle indicator ended Thursday at 295. After hitting the peak of 450 in August, it continues its descent towards the bottom of the cycle (green zone). The 6-month low should come once the value drops below 100 (currently 295).
-GOLD- Gold continues to grind a B-wave triangle before its decline towards $ 1750 – $ 1
-SILVER- Silver continues to consolidate. As with gold, I think it’s only a matter of time before prices drop. Initial support at $ 22.50 and then around $ 19.00 in the event of a strong price sell-off. I am very optimistic about long-term silver.
-GDX- The highest morning gap failed once again. Prices continue to record lower highs with each rebound, which should eventually lead to a sharp break below $ 39.00 at the end of the month. My ideal goal for a minimum of 6 months remains between $ 31.00 and $ 33.00.
-GDXJ- The Juniors also failed to maintain the morning gap and I still expect a breakdown below $ 54.00. Ideal target between $ 40.00 and $ 44.00.
-SPY- The stock rebound attempt failed to regain the 10-day EMA (341.76), and I see the potential for an accelerated decline below 330. Initial target 300 with 285 (or lower) possible if we get a other panic-type liquidation.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super cycle. For more information, please visit here.
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