The 5/27/14 Morning Report

Free Image Hosting at

Gold has been in a triangle consolidation since April. Gold is nearing the apex of the consolidation and which means it is the time for gold to choose a direction.

GCY00 Commodity Futures Price Chart for Gold C

Gold has breached the lower triangle stem in the overnight which suggests that gold may be declining into its daily cycle low. Gold will need to continue to make this a clear and convincing break. Tuesday is day 22 for the daily gold cycle. Gold is in the timing band to print a daily cycle low. A cycle low is defined as the lowest point after the cycle peak. Currently day 12 is the lowest point at 1276.50. Which means that gold needs to break below 1276.50 to print its daily cycle low.


Gold is also in its timing band to print an intermediate cycle low. Week 16 currently hosts the lowest point since the week 11 peak. A decline past the week 16 low of 1268.50 prints a lower low. A reversal after breaching 1268.50 will likely mark the intermediate cycle low.

Gold’s June 2013 intermediate low printed at 1180.60. The following intermediate low printed in December 2013 was 1182.60 — which was a higher low. Barring a total collapse of gold, I expect this intermediate low to print above the December low. Which will make this another higher weekly low. That will set the stage for gold to establish an uptrend.



One thought on “The 5/27/14 Morning Report

  1. Interesting. So we got the ICL break. Chalk one up for cycle theory. I guess the problem is if it keeps going down.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s