Cycle Trading

Gold’s daily cycle peaked back in October on day 9. It printed its lowest point last Wednesday, which was day 33. Thirty three days places gold is deep in its timing band to print a daily cycle low.

Gold did form a swing low on last Thursday. But so far has failed to regain the 10 day MA, which would be a signal of a new daily cycle. But the bullish divergence that we are witnessing on the Miners has me labeling today as day 4 of a new daily cycle.

The daily Miner cycle also peaked in October and then printed its lowest point last Wednesday. That was day 35, also placing the Miners deep in their timing band to print a daily cycle low. The Miners formed a swing low and closed above the lower daily cycle band on Thursday to signal a new daily cycle.

The Miners did back fill a gap on Friday and sold off a bit more on Monday. Today the Miners regained the 10 day Ma and closed once again above the lower daily cycle band.

If the Miners can break above 14.07 then they will form a weekly swing low which would be an early indicator that the Miners are also leaving behind an intermediate cycle low.