Cycle Trading

Let’s get right to it. The Metals had an interesting day on Tuesday printing bullish reversals.

The bullish reversals have placed gold, silver, and platinum on the verge of trend line breaks. And palladium did deliver a trend line break, although we will need to see a clear and convincing follow through.

Let’s take a closer look at gold.

The bullish reversal on Tuesday had gold once again test the declining trend line. At 18 days, gold has entered the timing band for a daily cycle low. A break above 1214.20 forms a swing low and will deliver a trend line break signaling a new daily cycle.

The dollar’s daily cycle peaked on day 7 and has been in decline. Tuesday was day 13 for the daily dollar cycle. The dollar is still five days shy of its timing band for a daily cycle low. We will need to keep an eye on the the declining trend line in case the dollar throws a curve ball at us.

Bonds also printed a reversal on Tuesday.

In real time day 19 looked like a daily low printed. A break above 102.55 forms a swing low and signals that day 19 was a fake out low. A break above the declining (red) trend line confirms Tuesday as the daily cycle low. Which may also mark an intermediate low as well.