Gold Ready for a Bounce

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The Dollar printed a swing high on Thursday.

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The dollar printed a new high on Wednesday, day 20, locking in a right translated daily cycle formation. With the dollar is in it timing band to seek a daily cycle low, Thursday’s swing high and trend line break should send the dollar into its daily cycle decline. The right translated cycle formation suggests a 4 – 8 day decline into a daily cycle low.

The dollar declining into its daily cycle low should help gold form its daily cycle low.

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Gold printed its lowest point on Tuesday following the day 6 peak. Tuesday was day 26, placing gold in its timing band for a daily cycle low. Gold did form a swing low on Wednesday. A close above the lower daily cycle band will signal a new daily cycle. A break of the declining trend line confirms the new daily cycle.

Gold is in its timing band for an intermediate cycle low. The potential exists for a new daily cycle to also signal a new intermediate cycle. But an expected brief dollar decline could see gold form one more left translated failed daily cycle before the intermediate cycle low is set.

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3 thoughts on “Gold Ready for a Bounce

  1. Hi there….. First many Thanks for your emails, I don’t understand everything. As example you sai last night: “The potential exists for a new daily cycle to also signal a new intermediate cycle”. But this morning GOLD is up 30.00 dollars in stead down. Do you think GOLD has an other leg down, and secondly where is the short top in GOLD?
    Thank-you very much for your response.
    Geurt

    • Since gold is in its timing band for an intermediate (weekly) cycle low this new daily cycle may also mean that gold is beginning a new weekly cycle.
      A weekly swing low is required to begin a new weekly cycle. Since gold printed a lower low this week, the earliest a weekly swing low can form would be next week.
      Then we would like to see a break of the declining weekly trend line for confirmation.

      • Sorry sir, means this GOLD is going higher or first in must by in an ICL, thus lower.
        THANK-You very much.,

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