The stage is set – metals and miners are positioned for a final decline into early December. All we need is a little downside follow-through tomorrow or early next week.
The Gold Cycle Indicator closed at 107. If we get one more dip, the GCI should approach the 50 level and maximum bottoming. If you didn’t have the opportunity to read it, check out the article explaining the GCI.
-GOLD- Gold is set up for the final decline into the 6-month low. All we need is a little downside follow-through after today’s swing high. The $1400 level (+/- $20.00) is my primary target. I still like the first week of December for a low, but it may extend into the December 11th Fed announcement – depending on the news events between now and then.
-SILVER- Same with silver – prices are set up perfectly for one final decline towards $15.60. All we need is some downside follow-through within the next few trading days.
-HUI MINING INDEX- The correction that began in August seems about complete. I see the potential for one final decline back towards the 200-day MA if prices break below the short-term trendline within the next week or two.
-GDX- Miners formed a swing high, and we have the opportunity for another breakdown. I’d still like to see a final panic selloff to complete this intermediate correction.
-GDXJ- Juniors also formed a swing high, and prices are once again poised to break lower. A breakdown below $35.50 should trigger a selling event towards primary support.
-GBTC- I haven’t touched on bitcoin in a while, so here’s a quick update on GBTC. Prices rebounded into early November on pro-block-chain news out of China. That rally has since faded. December seems to be a crucial month for Bitcoin. If prices break the October low, we could see a sharp selloff into mid-December before prices form a bottom.
-SPY- Stocks are pulling back as news regarding the phase I trade deal with China develops. The medium-term breakout remains valid as long as prices stay above 300.
Have a great night.