Cycle Trading

Gold is being squeezed by the declining 50 day MA and the rising 200 day MA.

Gold printed its lowest point on day 33, placing it in its timing band for a daily cycle low. Gold formed a swing low and managed to close above the 50 day MA to initially signal a new daily cycle. Since then, gold has lost the 50 day MA, which calls into question if day 33 was the DCL. And as of Tuesday, gold is threatening to lose the 200 day MA.

Gold needs to close back above the 50 day MA in order to label day 33 as the DCL and for the daily cycle to start to gain some traction. Losing support of the 200 day MA will signal a continuation of the daily cycle decline.