Bearish Inclination

000

Gold continues in its triangle consolidation.

gld

Since emerging from its yearly cycle low in December, gold peaked in March. While gold printed a 28 day daily cycle low on March 28th, gold has not yet formed a failed daily cycle to confirm the intermediate cycle decline.

Gold delivered a false bullish break out on Thursday, day 18. Gold is currently its timing band to print a daily cycle low. Now a break below the lower triangle stem will confirm that gold has begun its daily cycle decline.

But it appears that the Miners may be leading the way lower.

gdx

The Miners printed a bearish reversal last Wednesday, which was day 19. The Miners formed a daily swing high and breached the daily cycle trend line on Friday. Today the Miners delivered more bearish follow through to confirm that the Miners are declining into their daily cycle low. A peak on day 19 assures us of a right translated daily cycle.

Our expectation for both gold and the Miners is to begin their decline into their respective intermediate cycle lows. A failed daily cycle confirms the intermediate cycle decline. Both gold and the Miners appear to be forming right translated daily cycles. Therefore I suspect that both will need to form one more daily cycle. And that next daily cycle will form as left translated cycles and fail, leading to the intermediate cycle decline for both gold and the Miners.

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