Gold’s daily cycle delivered a bullish follow through to trend line break from Friday.
Friday saw gold successfully defend the 1280 level by setting a higher low. Gold gained 8.80 today providing a convincing trend line break. The True Strength Indicator also broke above the zero line adding further confirmation to a bullish daily cycle. Today’s advance was halted by the 200 MA. A close above the 200 MA will clear the way for gold to print a higher high, indicating a weekly cycle was left behind.
Meanwhile stocks managed to close higher on Monday.
Monday was day 15 for the daily equity cycle. Stocks rallied after testing the 50 day MA. However there are a few things that I want to point out. First off, stocks did print a swing high today. The swing high was accompanied by trend line break today as well. And there was also 40 million Selling on Strength that printed today. So despite the bullish close the possibility of a left translated cycle forming is still on the table.