Cycle Trading

Gold printed a bullish reversal off of support on Tuesday.

The 1800 level had been a resistance level in early 2020. Now it has turned into a support level.

Gold printed a bullish reversal off of support of the 200 day MA on day 28. After crawling along the 200 day MA last week gold undercut the day 28 low. Tuesday was day 33, which places gold in its timing band for a daily cycle low. Tuesday’s bullish reversal eases the parameters for forming a swing low. A break above 1845.00 will form a swing low to signal a new daily cycle. However gold is facing triple resistance from the 200 day MA and the converging 10 day MA and the 50 day MA. No rally will be able to gain any traction until gold can close above these 3 moving averages.