Cycle Trading

The decline from mid February has obscurred the daily cycle count for gold. Today is either day 11 or day 28. However the bullish reversal that the Miners printed indicates that today was day 28. Which places gold late in its timing band for a daily cycle low.

A break above 1164.30 forms a swing low. Then a declining trend line break confirms a new daily cycle.

Today the Miners printed a lower low before reversing higher. The bullish reversal on day 28 is very likely the daily cycle low. A break above 18.26 forms a swing low and a break of the declining trend line confirms a new daily cycle.

While gold closed lower for the day, the Miners diverged and printed a big 3% gain for the day. This is the type of bullish divergence that we like to see from the Miners as the lead gold out of a cycle low.

This week is week 18 for both gold and the Miners. At 18 weeks both have entered their timing bands for an intermediate cycle low. So if a daily cycle low is confirmed, it has the potential to mark an intermediate cycle low as well.