Precious Metal Turning Point?

03/04/2019 9:23 am EST

Focus: COMMODITIES

John Rawlins

President and CEO, QuantCycles.com

Time to reverse last month’s successful short in gold and silver, says John Rawlins founder of QuantCycles

Last month the QuantCycle Oscillator indicated a major shorting opportunity in gold and silver (and the Philadelphia Gold & Silver Index (XAU).

That was one of our better recent calls over the last month as both gold and silver has dropped significantly since the middle of February. In fact they both have dropped so much—especially gold, which made a significant low last week—  that both metals have moved near oversold territory in our short-term (240-minute) QuantCycle chart (see charts).

chart 1

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This presents a strong opportunity for a reversal as the short-term QuantCycle indicates that the outlook for both silver and gold has turned up.

John Rawlins described the value of the QuantCycle Oscillator recently at the Orlando MoneyShow.

The QuantCycle indicator is a technical tool that employs proprietary statistical techniques and complex algorithms to filter multiple cycles from historical data, combines them to obtain cyclical information from price data and then gives a graphical representation of their predictive behavior (center line forecast). Other proprietary frequency techniques are then employed to obtain the cycles embedded in the prices. The upper and lower bands of the oscillator represent a two-standard deviation move from the predictive price band and are indicative of extreme overbought/oversold conditions.

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