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.
Dow: Asymmetric Decline
Calculations indicate the Dow is expected to conduct a short term move up to 27147 by June 19, 2020. The Dow is then expected to move down in an asymmetrical form, as compared to the March – June move upward, ultimately reaching 18481 by August 28, 2020. Closing the 2/24/20 gap would be deferred to a later date.
Dow: Eight Point Trading Model
Over the last two days the Dow has been working through a typical engrbytrade Eight Point Trading Model as shown below. This was a recurring event in the futures market during late April and early May. After completing this decline today a move back up to the 28750 crossing point is expected before starting a significant decline.
Dow: Crossing Points
The Dow is still expected to cross the following Futures Market targets prior to turning and moving down toward 18481.
Target, Original Date and Time Identified
28750 2/23/20 @ 18:00 (final crossing point)
28665.5 2/23/20 @ 19:39
28626 2/23/20 @ 21:22
28214.5 2/25/20 @ 02:16
Dow: Nikkei 225 Alignment
Current calculations indicate the Nikkei 225 is expected to continue its retracement into the February 21, 2020 to February 25, 2020 gap within 5 trading days. After entering this range the Nikkei 225 and Dow are expected to stall and start moving lower. Preliminary calculations indicate the Dow is expected to reach 18481.
Gold: Next Turning Point
At this point gold should fluctuate within a range of 1727 to 1639 until the first week of July. The current structure and acceleration rate indicates a turning point should occur on July 6, 2020 (+/-1 trading day) where gold is expected to reach a price target of 1639 (+/- 1%) prior to moving above 1765. Preliminary calculations also indicate the gold timeline has been compressed significantly with a parabolic move starting slowly after July 2020 and reaching a peak of 4000 (+/- 2.5%) during the first quarter of 2021.
Dow: 1937 Parallel
Market Makers and Commercial Futures Traders continue to fill minor gaps in the Dow structure on their way to closing a final gap created on February 24, 2020, just as they did on August 12, 1937 before starting a sharp decline. Similarities between 1937 and today are noted in the following interview.
RAY DALIO September 23, 2017 Interview
Dow: Filling the Gaps
Based on high volatility in the futures market related to filling an unusually high number of price gaps in the Dow over the last two months, Futures Traders have aligned their positions in an attempt to fill the gap created on the NYSE at the opening of February 24, 2020. Once this is complete a decline is expected to commence going into late 2020.
Dow: Retracement Peak
Calculations indicate the Dow is expected to hit a peak closing price of 25054.98 (+/-1%) this week. This will mark the end of the retracement structure and a decline should start immediately thereafter.
Dow: Extended Decline
The decline to 18590 (+/-1%) is still expected to occur by July 1, 2020, as noted on May 16, 2020. In addition to this, calculations indicate the Dow is expected to continue moving lower after July 1, 2020 to 15,178 (+/-1%) by July 15, 2020.