Gold is getting close to forming its daily cycle low. Close but no cigar …
Gold’s daily cycle peaked on day 25 and then went on to print its lowest point last Thursday, day 36. That places gold deep in its timing band to print a daily cycle low.
We would like to see a break of the daily cycle trend line before gold prints its daily cycle low. That would certainly flush out any dip-buying-bulls. But in a bull market surprises come to the bull-side. So we need to keep an open mind to last Thursday being the daily cycle low. Gold is currently being squeezed by the rising trend line and the 10 day MA. At this point a close above the 10 day MA would signal a new daily cycle.
Another bullish signal is that the Miners formed a daily swing low on Tuesday.
The Miners printed their lowest point on Monday following the peak on day 12. Monday was day 22, which places the Miners in their timing band for a daily cycle low. The Miners need to break above the declining trend line to confirm a new daily cycle.
And if Monday turns out to be the daily cycle low, that would mean two things:
1) That the daily cycle formed as a right translated cycle, printing a higher high and a higher low.
2) By closing above the lower daily cycle band on Monday the Miners maintained their daily uptrend and will remain in a daily uptrend unless the close below the lower daily cycle band.