Cycle Trading

http://postimg.org/image/smdpoyucn/

On Monday we discussed how gold had little wiggle room before coming to a decision point. Well today gold made a decision and broke lower.

http://postimg.org/image/cqovlo3s7/

Thursday was day 14 for thee daily gold cycle. Gold broke lower today losing the 200 day MA and also closing below the previous daily cycle low. That confirms a failed daily cycle. And at 14 days, gold can go lower for another 4 to 11 days.

And the other takeaway today is that gold broke lower on a day that the dollar printed a bearish reversal.

http://postimg.org/image/jbxqo4ltt/

Thursday was day 9 for the daily dollar cycle. While the dollar printed a higher high, it also printed a bearish reversal outside of the Bollinger Band. Despite the dollar’s weakness, gold maybe telling us a big move is in store for gold, which we can see on the weekly chart.

http://postimg.org/image/z1cqln12f/

The intermediate gold cycle peaked on week 5. The failed daily cycle on week 11 signals that gold has entered its intermediate cycle decline. And at week 11, gold as another 6 more weeks until it enters its timing band for an intermediate low which can extend out to week 25. That is enough time to allow for the current daily cycle and one additional daily cycle to unfold.