The Miners formed a swing high today and dropped over 5 percent on the day. This is a warning that this daily cycle could fail.
The Miners printed their lowest point on Tuesday following the cycle peak. A swing low formed and we were looking for a close above the declining 50 day MA to confirm a new daily cycle. Instead they delivered a big 5% drop and looks like the daily cycle is in jeopardy of failing. A close below last Tuesday’s low 16.97 signals a failed daily cycle.
However, it looks as if gold is still searching for its daily cycle low. So there is still a chance that the Miners can bounce back. If they do, then a break above the declining trend line would mean that this is only noise.
Gold’s daily cycle peaked on day 22. Monday was the lowest point since the day 22 peak. Monday was day 30 for the daily gold cycle. Gold is getting late in its timing band to print a daily cycle low. A swing low and declining trend line break would signal a new daily cycle.