Cycle Trading

We discussed here last night how gold could possibly be leaving behind a stretched, 32 day, daily cycle low. The gold furthered its bullish case today.

But we still need to see gold either break above 1214.90 in support of a bullish scenario. A break below Friday’s low of 1168.40 would signal that day 27 was the daily cycle low and gold is declining into an intermediate low.

Tuesday saw gold close above the 50 day MA and deliver a bullish TSI crossover. These developments support the scenario of Friday being a 32 day, daily cycle low.

However the Miners were in disagreement with gold’s bullish case today. On a day with the dollar down and gold posting a gain the expectation would be for the Miners to follow suit. But Miners where down instead.

Tuesday was day 23 for the daily Miner cycle. The Miners are getting later in their timing band to seek out a daily cycle low. Today the Miners also printed a bearish engulfing candle, which signals a reversal. A break below the daily cycle trend line will confirm that the Miners have entered their daily cycle decline.