Gold Getting Close …

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Gold is getting close to forming its daily cycle low. Close but no cigar …

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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.

gdx

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.

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One thought on “Gold Getting Close …

  1. I am glad to see you have adjusted the low since I pointed out to you couple of days ago that last Thursday, July 21 was the lowest low, 1310.8. As a matter of fact, I believed that was a low for this time period because time and price have balanced on that day and should produce at least some sort of a short term bottom, barring any surprise by the central banks. Below is the text message I sent my friends on Thursday, July 21 at 8:47 pm. “Here’s my assessment of the recent gold market pullback. Gold hit a skid on July 6 at $1374.9 and began a pullback in a mild manner. It hit a low at $1310.8 yesterday in the after hour trading and began a mild recovery. Looking at my Gann model, time and price have balanced on two different time frames. So I believe the recent pullback is behind us and gold should begin another short term rally into my projected time frame, August 4/5 for another short term high. Of course, this is just a forecast, nothing is guaranteed. If gold should pullback again and break the recent low, $1310.8, then it would go lower into the next two most important support level of .382 and 50 percent, at $1249, $1210, respectively. Those are actually buying opportunities in an ongoing bull market. One can buy and average out the cost of the share prices.”

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