Bullish Surprise

89

Gold’s daily cycle was rejected by the 50 day MA on day 7. A swing high followed indicating that gold had entered a daily cycle decline. But the big 25 point gain today formed a bullish reversal and closed at a new cycle high.

1 gld

Today’s bullish reversal negated the previous swing high and has set the daily cycle trend line. A new closing high on day 11 begins to shift the likelihood that this daily cycle will form as a right translated cycle. And I do not think that it is a coincident that gold rallied on a day were the dollar stumbled.

The dollar’s daily cycle printed a bullish reversal last Thursday and a swing low on Friday, indicating a new daily cycle. The clear and convincing break above the declining trend line on Monday confirmed the new daily cycle.

2 $$$

Wednesday was day 4 for the dollar’s daily cycle. We discussed here last week how the dollar is due to begin an intermediate cycle decline. An intermediate cycle decline requires a failed daily cycle. Failed dollar cycles typically peak on or before day 8. The inside day that printed today could be signaling a change for the dollar. Should the dollar follow through and roll over soon, that would leave 3 to 4 more weeks before a daily cycle low is due.

Advertisements

Leave a Reply

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

WordPress.com Logo

You are commenting using your WordPress.com 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 )

Google+ photo

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

Connecting to %s