Cycle Trading

Gold has been in a daily uptrend that has been characterized by continually closing above the upper daily cycle band. Today gold formed a swing high and closed below the upper daily cycle band.

Monday was day 19 for gold’s daily cycle. This places gold in its timing band to seek out a daily cycle low. The swing high accompanied by the close below the upper daily cycle band indicates that gold has begun its daily cycle decline.

This is also week 15 for gold’s intermediate cycle. So we need to be suspicious that a daily cycle decline can lead to an intermediate cycle decline. A close below the lower daily cycle band will signal the intermediate cycle is in decline.

A more likely scenario will see gold form a right translate daily cycle low over the next week or so. Then the next daily cycle will form as a left translated, failed daily cycle, that leads to the intermediate cycle decline.