Golds Delivers Follow Through

May 5, 2014

Gold’s daily cycle delivered a bullish follow through to trend line break from Friday.

Friday saw gold successfully defend the 1280 level by setting a higher low. Gold gained 8.80 today providing a convincing trend line break. The True Strength Indicator also broke above the zero line adding further confirmation to a bullish daily cycle. Today’s advance was halted by the 200 MA. A close above the 200 MA will clear the way for gold to print a higher high, indicating a weekly cycle was left behind.

Meanwhile stocks managed to close higher on Monday.

Monday was day 15 for the daily equity cycle. Stocks rallied after testing the 50 day MA. However there are a few things that I want to point out. First off, stocks did print a swing high today. The swing high was accompanied by trend line break today as well. And there was also 40 million Selling on Strength that printed today. So despite the bullish close the possibility of a left translated cycle forming is still on the table.

3 responses to “Golds Delivers Follow Through”

rlmsix

May 5, 2014

Likesmoney,
Could today have been the turn for a DCL for TLT, and do you think we could possibly be in a new IC for GOLD, does $1331 still confirm a new IC. The way GOLD is acting seems to be easing oversold for a final ICL. Difficult, difficult…..
Jack Dog

Reply
likesmoneystudies

May 6, 2014

Jack Dog,

Gold has formed a weekly swing low and there is a declining weekly trend line break. All requirements for a new intermediate cycle. And yes a break above 1331 would provide clear and convincing evidence that gold is in a new IC. Friday could have marked the peak for bonds. A break below 111.30 forms a daily swing high.

LM

Reply
1. rlmsix
  
  May 6, 2014
  
  Likesmoney,
  This morning we have the $ breaking lower but see no real response from the PM’s….strange?
  Jackdog
  
  Reply

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