The engrbytrade Dow model indicates a peak of 30,409 (+/- 1%) is expected on September 16, 2020 (+/- 1 trading day) prior to moving significantly lower. Following this peak, estimates currently indicate a move down below 17,000 by December 2020.
Dow: Distribution of Inventory
Replacing Exxon Mobil, Pfizer and Raytheon Technologies with Salesforce, Amgen, and Honeywell International will allow Exchange Insiders to extend the current rally an additional 6% as they maximize short sales during their distribution of inventory (stock) to the public. The Dow is expected to reach 30,469 by September 28, 2020 and hit an upper trend line shown in the chart above.
Stock chart courtesy of StockCharts.com.
Dow: Structural Changes
In an attempt to mitigate a precipitous decline in the Dow, S&P Dow Jones Indices announced structural changes that will go into effect on August 31, 2020. This adjustment does not change expectations for a decline between August 2020 and October 2020, as noted on August 9, 2020.
Silver: Below $20
Commercial Futures Traders and Market Makers are still planning to conduct a sharp decline in silver. By September 16, 2020 silver is expected to drop below the $20 mark prior to moving higher.
Dow: 2018 Repeat Performance
Watch Market Makers conduct a repeat performance of 2018 by December 2020.
Posted by CNN on November 20, 2018.
Silver: Sharp Decline
Based on the actions of Commercial Futures Traders and Market Makers, engrbytrade calculations indicate a sharp decline in silver is expected between August 14, 2020 and August 21, 2020. Model results point to silver potentially reaching $17 by August 21, 2020.
Silver: Volatility Continues
As volatility continues to increase, silver is expected to start moving up exponentially between August 2020 and February 2021. Based on the latest run up to the $30 mark in overseas trading, calculations now show a drop below the $24 mark before moving higher. The next level for silver is expected to be in the $70 range by October 2020.
Gold: In Alignment
In overnight trading on August 12, 2020 at 00:31 gold hit a low of 1876.50 and is still in alignment with the engrbytrade gold model structure. Gold is expected to trade below 1900 before moving higher to a range of 2400 by mid-October 2020.
Dow: Close the Gap
A detailed review of the current Dow structure indicates a peak is expected on August 12, 2020 (+/- 1.5 trading days). This move should allow sufficient time for Market Makers to close the gap created on February 24, 2020. Following this peak the Dow is expected fall below 17,000 by mid-October 2020.
Silver: Sharp Decline Warning
Be aware that calculations indicate Commercial Futures Traders are planning to start a sharp structural decline in silver this week with potential intraday futures trading below the $18 mark over the next several trading days.
Silver: August 2020 Decline
Final structural calculations for silver indicate a decline starting August 6, 2020 (+/- 1 trading day) and moving down to $20.60 (+/- 0.60) by August 14, 2020 (+/- 1 trading day). This move is expected to occur during the decline of the Dow, as noted on July 23, 2020.
Gold: Decline and Setup
Final structural calculations indicate gold is expected to decline to $1860 (+/- $10) by August 18, 2020 (+/- 1 trading day). This decline will setup the next move for a push to $2300 by October 2020.
Silver: U.S. Dollar Alignment
At this point in time silver has entered a range where its relative value is out of alignment with the U.S. Dollar. A brief pullback is expected, as mentioned on July 21, 2020, prior to moving significantly higher.
Dow: August Decline
Structural calculations currently show a decline starting on July 29, 2020 (+/-1 trading day) and reaching 18481 (+/-1%) by August 19, 2020 (+/- 1 trading day). Following this decline, a short term move upward is expected prior to dropping into the last quarter of 2020.
Gold: Long Term Move
Long term calculations indicate gold is on track to continue moving significantly higher going into 2021. It is expected to reach a peak of 4000 (+/- 2.5%) during the first quarter of 2021.
Note:
As the price of gold continues to move upward, the Federal Reserve will realize that inflation has started moving exponentially higher and will not respond to their short-term actions. This will force the Fed to raise interest rates to extremely high levels, resulting in a collapse of the bond market.
Silver: Short Term Move
Short term calculations indicate a brief pullback in silver is expected going into mid-August before starting a significant move upward during the last four months of 2020. A price target of $40 is expected by the end of October 2020. Preliminary calculations indicate a silver price of $80 by January 2021.
Silver: Accumulation Effort
There is a 28% chance that silver will drop below 15.00 during the Dow’s upcoming decline, as noted on June 26, 2020. If silver drops below 15.00 it will confirm a major accumulation effort is nearing its end and higher silver prices are expected during the last half of 2020 and first quarter of 2021.
Dow: Gap Filled
Between June 17, 2020 and June 26, 2020, the Dow moved from 26,119.61 to 25,015.55. Today, Market Makers filled the gap that occurred between June 10, 2020 and June 11, 2020. This move aligns with the development of a rising wedge starting from a low of 20,735.02 on April 2, 2020. It also confirms the intent of Market Makers and Commercial Futures Traders to move the Dow down to 18481.
Gold: Steady Pace Upward
Based on price structures developed between April and June, gold is expected to start moving higher at a steady pace during the next three months. An accelerated move to the upside should occur between October 2020 and February 2021. Additional information will be provided in the coming weeks.
Dow: Structured Decline
On June 17, 2020 Futures Traders initiated the development of a basic Descending Triangle structure in preparation for a sharp decline in the Dow. Over the last five trading days calculations confirmed this structure has been designed to move the Dow down to 18481 by August 28, 2020. Volatility is expected to increase as the Dow moves lower over the next 45 trading days.
Dow: Volatile Decline
It should be noted that during the mid-June 2020 decline a select group of “short” exchange index products were under heavy accumulation during June 11 – 12, 2020. Historical data indicates that significant gaps, such as the one created on April 3 – 6, 2020 are expected to be filled. This would place the Dow in an extremely volatile range of 21447.81 (+/- 5%).
Silver: Silver vs. Gold
Based on Silver’s current trading structure, it is expected to follow a similar pattern as gold. A low in the range of $16.75 is expected by July 6, 2020 prior to moving higher.
Gold: Brief Decline
As expected, Commercial Futures Traders have adjusted their positions in preparation for a brief decline going into July 6, 2020 (+/-1 trading day) where gold is expected to reach a price target of 1639 (+/- 1%) prior to moving above 1765. After reaching 1639, a long term move will start and ultimately reach a peak of 4000 (+/- 2.5%) during the first quarter of 2021.
Dow: Early Decline
During the Federal Reserve Chairman’s testimony today, Futures Traders had a change of plans and developed a basic Descending Triangle structure as a prelude to a sharp decline in the Dow. This decline could be a minimum of 10% over the next 3 to 5 trading days.
Dow: Volatility Continues
As volatility continues to drive the Dow through extreme cycles each day it is still on track to move up to a peak of 27147 (+/- 0.5%) on Friday, June 19, 2020 before stopping and turning lower in July and August 2020. This peak is expected to have a retracement level of 78.6% based on a high of 29568.57 on February 12, 2020 and a low of 18213.65 on March 23, 2020.