Following Suit …

000

The dollar printed a 26 day left translated daily cycle low on 12/27. Then it went on to print a 19 day right translated daily cycle low on 1/24. The current daily cycle peaked on day 5 and tagged the trend line on day 12.

DXY00 Commodity Futures Price Chart for U S D

Wednesday was day 13 for the daily dollar cycle. The dollar did print a higher high and a higher low today, forming a swing low. Since the dollar is not in its timing band for a daily cycle low I suspect the dollar is crawling along the trend line and will form a mini-bear flag. But with a day 5 peak, I expect to see the dollar break to the downside and go on to break below the previous low set on 1/24.

Gold set a higher daily cycle high on Wednesday.

GCY00 Commodity Futures Price Chart for Gold C

After break above the 1260 resistance level on Tuesday gold managed to close higher once again. Gold may need to consolidate after breaking through this resistance level, but there is still plenty of time to see gold make a run at the 1300 level during this daily cycle. And gold is not the only precious metal to break above a resistance level.

PAY00 Commodity Futures Price Chart for Pallad

PLY00 Commodity Futures Price Chart for Platin

Both Palladium and Platinum broke above resistance levels today. Today was day 6 for both daily cycles. Palladium and Platinum both printed higher lows. And now that they broke above resistance our cyclical expectation is for both to go on to print higher daily cycle highs.

The final precious metal that has yet to break out is silver.

SIY00 Commodity Futures Price Chart for Silver

Wednesday was day 9 for silver’s daily cycle. Silver has spent 56 days below this resistance level. Silver recently left behind a 19 day left translated daily cycle low. Even though silver left behind a higher low, the fact that it was a left translated cycle does not allow us to automatically expect silver to print a higher cyclical high. But with the precious metals sector all having formed right translated daily cycle lows that printed higher lows and now have gone on to break above resistance level, I suspect we will see silver follow suit.

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