Cycle Trading

Summary

• Gold appears to be working through a daily cycle decline after forming a swing high and closing below the 10 day moving average.
• The key level to watch is the 5000 support zone.
• As long as gold holds this level, the pullback could remain a shallow reset within a larger uptrend.

Gold appears to be working through a daily cycle decline. After reaching a recent peak, gold formed a swing high and closed below the 10 day moving average on day 20, signaling that the daily cycle had turned lower. Since then, gold has been consolidating while testing the 5000 support level.

For now, the key level to watch remains the 5000 support zone. If gold continues to hold this area, the metal could simply be working through a normal cycle reset within a larger uptrend.

Key Levels to Watch

Support: 5000
Resistance: 10 day MA

Cycle Signal: A close below the 10 week MA would signal that the intermediate cycle decline has begun.

Cycle Context

Gold is not the only market currently approaching an important cycle window. Several major assets are also nearing key timing bands, which could lead to increased volatility across markets in the weeks ahead.