The dollar rallied on Monday while gold sold off, so why did the Miners form a swing low?
One reasons could be their timing band — the Miners printed their lowest point on Friday, day 39, placing them deep in their timing band for a DCL. A close above the 10 day MA will signal the new daily cycle.
Another reason could be that the Miners may be sniffing out something happening with gold.
Monday was day 12 for gold, which is too early to expect a DCL to form. However, gold is in a daily uptrend. If gold forms a swing low and closes back above both the 50 day MA and the 10 day MA that would indicate a continuation of its daily uptrend and signal a cycle band buy signal.
And if gold does form a swing low here, then we should consider the triangle pattern that has formed over the past 4. months.
Gold has been consolidating over the past 4 months. A bullish break out of consolidation should result in a trending move.
Cycle Trading 
Leave a comment