Back on June 8th we discussed here about a big test facing gold.
Back then we made the observation that once gold lost the 50 MA it began its decline into its intermediate cycle low. In both of the intermediate cycles above, gold tried to recover the 50 MA but could not hold on and then continued its intermediate cycle decline.
Back on June 8th gold appeared to have printed a daily cycle low at the 6 month support/resistance zone. The big test for gold would be if it could break above the 50 day MA in a clear and convincing fashion.
Gold passed with flying colors.
Gold began this week being rejected by the 50 day MA. Gold printed a near 30 point swing form Monday’s high and Tuesday’s low. But, as we discussed earlier this week, we felt that Tuesday would end up being a half cycle low based on how the Miners were behaving. Then gold had a recognition day on Thursday.
The 40 point break out declared in a clear and convincing way that gold not only confirmed a new daily cycle, but a new intermediate cycle has well.
Surprises tend to support the trend.
And Thursday’s 40 point break is a clear signal of a new bullish trend.