Gold Joins the Party

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Gold broke below its daily cycle trend line today, thereby joining the party of the other precious metals in a daily cycle decline.

party

Since platinum and palladium both began their daily cycles ahead of gold, we will watch to see if they bottom ahead of gold as well.

gold

Gold’s daily cycle peaked on day 17, formed a swing high the next day and broke below the daily cycle trend line on day 20 confirming a daily cycle decline. The day 17 peak suggests that this daily cycle will form as a right translated cycle printing a higher daily cycle low.

Its no coincident to me that gold confirms a daily cycle decline as the dollar declares a new daily cycle.

DXY00 Commodity Futures Price Chart for U S D

Last night it appeared that the dollar was forming a bear flag. The bullish breakout and declining trend break helps to confirm today as day 4 of a new daily cycle.

Now a few observations on NATGAS

I worked up a few charts on NATGAS on Monday night, but then left them on the “cutting room floor”

NGY00 monthly

Only two other times over the past the past 10 years has NATGAS pierced the upper monthly bollinger band. Both times preceded a big decline. And currently NATGAS has once again pierced the upper monthly bollinger band.

natweekly

The other observation I made on Monday was that the previous three times NATGAS pierced the upper weekly bollinger band that preceded a weekly decline. Currently NATGAS has once again pierced the upper weekly bollinger band.

Now let’s look at the same charts today.

NGY00 monthly2

The monthly candle is already leaving behind a long shadow on its monthly candle.

But the weekly view is more dramatic …

natweek2

This is week 25 and NATGAS is printing an ugly bearish reversal. It appears that NATGAS is ready to decline into a weekly cycle low.

nat daily

The daily cycle shows a bearish reversal printed today, day 14. Now a break below 4.90 forms a daily swing high. Which will likely lead into a daily cycle decline and possibly turn into an intermediate cycle decline.

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4 thoughts on “Gold Joins the Party

  1. Likesmoney,
    Thanks for the analysis on NG. Did ride it, ( UNG ), to $6.95 and got out. Did not have an idea as to how to continue playing it. We shall see if it repeats as before or if this time is different. Looking to see what happens whit NG at $4.20 / $4.40.
    Any thoughts on Silver.
    Thanks, Jack Dog

    • Jack Dog,

      I am cautiously bullish on silver. Silver will need to stay above the previous daily cycle low during this daily cycle decline. If silver can manage to accomplish that, the weekly bullish divergence on the True Strength Indicator points to a break out.

      $ SILVER Sharp Charts Workbench Stock Charts co

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