Cycle Trading

 Gold had been consolidating below the 3350 level — until Thursday. Gold broke below consolidation on Thursday to signal the daily cycle decline.   We will be watching the rising 50 day MA for potential support for a swing low to form. However, — there is another possibility.

Gold did form a reversal on the day. Gold also broke below the 50% fib level on Thursday. With gold currently in a daily uptrend, it’s possible to see an early DCL form.  A swing low with a close above the 10 day MA will indicate a continuation of its daily uptrend and signal a cycle band buy signal — in which we would then label day 16 as an early DCL. A break above 3276.15 will form a swing low.