Cycle Trading: Gold Update
|Currently gold is in a daily uptrend and will continue in its daily uptrend unless it closes below the lower daily cycle band. However the swing high and close below the 10 day MA to signals that gold has begun its daily cycle decline.
Tuesday was day 45 for the daily gold cycle. That places gold deep in its timing band for printing a daily cycle low. Gold should break below the (blue) daily cycle trend line in order to complete is daily cycle decline.
Since gold has been trading inversely with the dollar, then let's get a sense of where the dollar is in its daily cycle.
The dollar printed its lowest point on Friday following the day 9 peak. Friday was day 26, placing the it early in its timing band for a daily cycle low. Lately the dollar's daily cycle have been averaging over 30 days. But since the last daily cycle ran 50 days, we could see a shortened daily cycle here. The dollar has formed a daily swing low. A close above the declining 10 day MA will signal that day 26 did host the DCL. Then a close above the declining trend line confirms the new daily cycle.
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