Gold formed a swing low on Friday to signal a new daily cycle. While the Miners closed positive on Friday, they did not form a swing low. In the Weekend Report we discussed looking for the Miners to deliver some bullish follow through on Monday and form a swing low. Instead of delivering some bullish follow through, the Miners closed down over 2% on Monday.
While gold did close lower on Monday, Thursday remains the lowest point and could still mark the DCL. However, a break below Thursday low of 1210.70 will negate gold’s swing low and extend the gold’s daily cycle decline.
Both gold and the Miners are in their timing band for an ICL. While gold drives the previous metals market, often times the Miners lead gold out of the ICL. So while Thursday could still prove to be the DCL for gold, the Miners printed a lower low on Monday, extending their daily cycle decline. At this point we are looking for a swing low and close above the declining 10 day MA to confirm a new daily cycle for the Miners.
Cycle Trading 
Leave a comment