Cycle Trading

Gold formed a swing high on Wednesday, day 27, placing gold in its timing band for a DCL.

If gold delivers any bearish follow through and closes below the 10 day MA, that would signal the daily cycle decline.

We can see on a longer term view that gold was approaching resistance at its all-time highs and traders are taking profits. This would be a logical place for a daily cycle decline. However, if gold reverses and closes above this resistance level, that would be a buy signal — using the previous all time high as the stop.