Cycle Trading

Gold is forming a triangle consolidation following the move off of the late May low.

And we are waiting for a convincing break above the upper triangle stem to signal the next leg up for gold.

Gold has not delivered a recognizable daily cycle low since late May. And gold is in its timing band for a daily cycle low. One possible scenario would be for gold to make one more test of the upper triangle stem, be rejected, and then break convincingly below the lower stem as it declines into its daily cycle low.

Since gold is in a daily uptrend we need to be alert for the possibility for a bullish break. Gold has been unable to close above the 1430 level as it has been working through the triangle consolidation. If gold breaks above the 1430 level and closes convincingly above the upper triangle stem, then we would label day 17 as the DCL.