Cycle Trading

Gold broke below the daily cycle trend line on Wednesday to confirm that gold has entered its daily cycle decline.

Wednesday was day 23, placing gold in its timing band for a daily cycle low. Ideally gold will print a narrow range lower low in order to ease the parameters for forming a swing low. Then a close above the 200 MA would signal a new daily cycle.

Stocks delivered more bullish follow through on Wednesday to close above the upper daily cycle band. This signals that Friday hosted an intermediate cycle low.

Stocks have formed a weekly swing low and delivered a break of the declining weekly trend line. This signals that week was the intermediate cycle low. If stocks can close back above the upper weekly cycle band that will confirm that stocks remain in their weekly uptrend.