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Cycle Trading

Gold Delivers An Undercut

Gold broke below the day 5 low on Tuesday, to extend its daily cycle decline.

Since printing the day 55 low, gold has traded sideways, which allowed it to catch up to the 10 day MA. Tuesday was day 63, placing gold very deep in its timing band for a DCL. Tuesday’s bullish reversal helps to ease the parameters for forming a daily swing low. A break above 1779.20 will form a swing low. Then a close above the 10 day MA will signal the DCL.

2 responses to “Gold Delivers An Undercut”

  1. Seb Avatar
    Seb

    Curious why you didn’t mark late April as a DCL?
    That would put gold in a new cycle and now potentially left translated and in a failed cycle. Not a good formation for a monthly outlook.

    Thoughts?
    Are you on twitter?

    Cheers

    Reply
    1. likesmoneystudies Avatar
      likesmoneystudies

      There were 2 reasons as to why I did not mark late April (day 20) as the DCL.
      1st – 20 days is early for A DCL
      2nd – The decline into the day 20 low did not manage to turn the 10 day MA lower.

      Reply

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