Gold emphatically burst through the 1300 level today.
Gold also broke above the declining daily cycle trend line today, confirming this as a new daily cycle (finally). Gold also tested the initial panic lows.
With gold setting a new daily cycle high at day 15 shifts the odds of this cycle forming as a right translated daily cycle. Which is a necessary in order to leave behind a yearly cycle low.
However, considering the 3% rise in gold today, gold testing the initial panic lows and gold also breached the upper Bollinger Band, gold may need a few days to consolidate this move.
The weekly chart shows gold on the verge of breaking above the declining weekly trend line. Gold conquering this line confirms a new intermediate cycle.
As big as gold’s 3% gain was, silver had an even bigger day. Silver surged for a 5.32% gain.
And the Miners exploded for a 6.08% gain.
(I circled to gaps in the HUI that are at about the same level. That could be a likely target on a daily cycle correction)
What we are beginning to see here are upside surprises in the metals. That is signaling that the yearly cycle lows have been left behind. The above are all overbought at the moment. All are nearing their timing band for a daily cycle low. I think that when the dollar begins to rally, that will mark the daily cycle peak for precious metals.
Monday was day 23 for the daily dollar cycle. The dollar is in the timing band to print a daily cycle low. A break above 82.54 forms a swing low. And an accompanying break of the declining cycle trend line would confirm a new daily cycle.
I think that the second daily cycle for precious metals will provide more upside surprises.
Cycle Trading 
Leave a comment