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Cycle Trading

Just when you thought it was safe to go back in the waters …

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While gold formed a swing low on Tuesday, there was no confirmation of a new daily cycle …

gld swing

Since gold was late in its timing band for a daily cycle low, it looked like an opportunity to “get back into the water” …

gld daily

But then gold broke lower on Wednesday. Wednesday was day 33 for the daily gold cycle. With gold being this late in its daily cycle, it should bottom any day.

gld divergence am

Gold printed its last yearly cycle low on 12/03/15. Gold is in its timing band for another yearly cycle low. Similar to last year there are divergences developing on the True Strength Indicator and the Money Flow Index. Which signals that once the daily cycle low is in it will most likely mark yearly cycle low as well.

One response to “Just when you thought it was safe to go back in the waters …”

  1. Ready to Test the Waters | Cycle Trading

    […] form a weekly swing low off of the long term support/resistance 1175 level. And as we discussed here last week, gold is in its timing band for a yearly cycle low. So if a weekly swing low forms, it is […]

    Reply

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