Gold extends it daily cycle decline
|Gold undercut the day 45 low on Monday to form a lower low
While gold formed a swing low off of the day 45 low last week, it did not deliver any bullish follow through. So with gold undercutting the day 45 low on Monday, that extends the daily cycle decline. That makes Monday day 51 - which is very deep in its timing band for a DCL. Since gold reversed off of the 200 day MA on Monday, it is possible to see gold form a swing low on Tuesday to signal the DCL. But the weekly chart suggests another possibility
Gold became stretched above both the 50 week MA and the 10 week MA on week 12. The current daily cycle decline caused gold to tag the 50 week MA and is allowing the 10 week MA to catch up to price. We could see gold tag the 10 week MA. At 55 days, if gold forms a daily swing low, after tagging the 10 week MA, that would have good odds of marking the DCL.
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