In real time, we were uncertain if day 27 or day 32 marked the daily cycle low. Today’s rally by gold has provided some clarity.
If day 27 was gold’s daily cycle low, then day 32 was a break below the daily cycle low, which would mean that gold formed a failed daily cycle. But since a cycle cannot fail and then break out to a new high, by definition, we must label day 32 as gold’s daily cycle low. This makes Wednesday day 8 of a new daily cycle.
This intermediate cycle continues to resemble the previous weekly cycle. Gold has broken above the previous declining weekly trend line, found support along the new weekly trend line and then launching higher.