Follow Through

0 o
how to take a screen shot

The dollar printed a reversal last Thursday, which was day 24. Being in the timing band for a daily cycle low, the dollar had good odds that the reversal marked the daily cycle low. We needed to see some follow through before the dollar could confirm a new daily cycle.

The dollar delivered that bullish follow through today.

1 $$$ daily

The dollar broke above the declining trend line today in a clear and convincing manner to confirm that last Thursday did print a daily cycle low.

Gold also delivered some follow through today.

gld

The daily gold cycle peaked peaked on day 9, where it was rejected by the 200 day MA. Gold lost the 50 day MA on Monday and delivered more bearish follow through today. Now at day 12, gold should start to feel the gravitational pull of the impending daily cycle low. A break below 1162.10 forms a failed daily cycle, continuing the intermediate cycle decline that we discussed here yesterday.

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