Cycle Trading

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Gold’s daily cycle peaked last Thursday, on day 13. Gold proceeded to print lower highs through today, where gold broke below the daily cycle trend line to confirm the daily cycle decline.

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Thursday was day 18 for gold’s daily cycle. At 18 days, gold has now entered it timing band to print a daily cycle low. Today’s decline brought gold to the 200 day MA, which is an obvious level of support. But at 18 day’s gold can still print a lower low and form a right translated daily cycle. The next obvious support level would be the 50 day MA. So now we look for a swing low accompanied by a declining trend line break to signal a new daily cycle.

The Miners are deeper in their daily cycle than gold so therefore could bottom earlier than gold.

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Thursday was day 29 for the daily Miner cycle. Today saw the Miners print a lower low and breached the daily cycle trend line. The Miners are deep enough in their daily cycle where a swing low will likely mark the daily cycle low. Of course a break above the declining trend line will confirm a new daily cycle for the Miners. Since this daily cycle for the Miners has formed as a right translated cycle, our expectation will be to see the Miners go on to print a higher daily cycle high.