Gold, Silver, and Miners are extending their cycles higher. The miners should gap up higher this morning, and this is the move I attempted to catch last week. I guess it was slightly delayed.
Prices should seek out cycle highs this week. I will be watching the miners for clues throughout the day. How and where they close will provide short-term trading expectations.
-GOLD- It is the 20th day of the current gold cycle, and prices reached new highs ($1,218.90). The next stopping point for the cycle is between $1,215 and $1,230. Prices closing back below $1,200 or breaking the cycle trendline will initiate the correction into a common cycle low and subsequent buying opportunity.
-SILVER- Silver also reached fresh highs ($17.12) and is coming into resistance between $17.11 and $17.30. Closing back below the 50-day EMA ($16.87) will signal that the correction into a cycle low is underway.
-GDX- How and where prices close today is key: If prices gap up and then rally throughout the day, we could see a continued rise. However, prices gapping up in the morning and then closing flat or below the open would imply a topping process and an immediate correction.
The move higher in miners was postponed by two trading days, and we should see fresh cycle highs today. Closing below the $23.00 level in GDX will imply a cycle top.
I will update the short-term targets in the Tuesday Report.