Cycle Trading

Both gold & oil formed weekly swing highs this week.

Gold formed a bearish weekly reversal last week. This week gold is delivering bearish follow through by forming a weekly swing high. A close below the breakout level will signal the intermediate cycle decline.

Oil also printed a bearish weekly reversal last week and is delivering bearish follow through this week. Not only has oil formed a weekly swing high, oil also broke below the weekly trend line to signal the intermediate cycle decline. Oil should go on to break below the 10 week MA and turn it lower in order to complete its intermediate cycle decline. Oil is currently in a weekly uptrend. Oil will remain in its weekly uptrend unless it closes below the lower weekly cycle band.