Gold’s Next Leg Up …

October 4, 2012

Thursday was day 14 for the dollar.

The dollar very likely printed the daily cycle peak on Monday, day 11.
Thursday saw the dollar convincingly breach the daily cycle trend line.
At day 14, the dollar has another 4 days before entering the timing band for a daily cycle low.
The timing band stretches until day 25 so that leaves up to another 11 days for the dollar to find it daily cycle low.

There has not been a weekly swing low and declining trend line break, which is needed to confirm a new intermediate cycle. Therefore, the current weekly cycle is week 22. If the daily cycle does continues to roll over it will find a low in the next two weeks which could extend the dollar’s intermediate cycle to week 24.

There has been a lid on gold at the 1780 level for the past 3 weeks.
Gold responded to the dollar breakdown by breaking above consolidation.
Gold should continue to rally as the dollar seeks out its daily cycle low, which could see gold potentially rally until day 17.

A follow up to last night debates has the media reporting that Romney did well in the debates.

Well Ben has a message for Obama …

8 responses to “Gold’s Next Leg Up …”

nikeboy 2008

October 4, 2012

thank you for your report.

Reply
jeff the flee

October 4, 2012

LM gold ” should not” break the riseing trendline for how many days?

Reply
1. likesmoneystudies
  
  October 5, 2012
  
  Jeff,
  
  I believe what you are asking me how many days until gold confirms a daily cycle decline.
  That will depend on how many days the dollar needs to print a bottom.
  The dollar’s normal timing band begins on day 18 and runs through day 25.
  I am thinking that we will see the dollar print a low late in the cycle.
  
  Reply
  1. likesbullmarkets
    
    October 7, 2012
    
    yes i see what you are saying, my thinking was wrong in that the trendline can be reset and still be meaningless. That in itself is not any indicator
Jack Dog

October 4, 2012

Likesmoney,
Now that OIL has made its swing, what can Uncle Ben do if anything to keep it in check, you have any thoughts?
There is a lot of talk that $1,840.00 to $1,860.00 will hold Gold at the next stair step and will stumble back down to the $1,780. to $1,810.00 level. The question I have would this fall in line with a new $ DC. Not seeing any real resistance at the next stair step level other than the start of a new $ DC. Or have I lucked out an answered my own question.
Great reports, thank you,
Jack Dog

Reply
1. likesmoneystudies
  
  October 5, 2012
  
  Jack,
  
  My thoughts on oil is that it is going up, but the ride will be volatile.
  
  Regarding gold, I can see where there is a resistance zone for gold in the 1840-60 range.
  
  Gold will trade inversely to the dollar as the dollar seeks out its intermediate cycle low.
  
  The dollar should break below the previous daily cycle low of 78.60. A back test of the 78.60 level may sync up with gold at the 1840-60 level.
  
  I think the dollar will continue on and likely take out the yearly low of 78.09, printing a failed yearly cycle.
  
  Reply
  1. Jack Dog
    
    October 5, 2012
    
    Thanks
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