Golden Reminder

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I have received some emails today that expressed a concern that gold’s daily cycle may roll over and print a failed daily cycle. Let’s take a look.

gld

Wednesday, Gold formed a swing low off the 10/07 low and recovered the 200 day MA to signal a new daily cycle. So while gold did close lower today, gold still managed to print a higher high and close above the 200 day MA. So unless gold breaks below the 10/07 low of 1243.20 we need to be patient.

There are 2 bullish observations:

gld traction

The first is that gold has been resisting a strong dollar rally. The second is this is beginning to look a lot like the previous intermediate cycle low. The True Strength Indicator reached the same level as the last intermediate low and has now delivered a bullish zero line crossover. Also the previous intermediate low needed a few days before getting some traction. And gold finally found some traction once the dollar rolled over.

$$$

Thursday was day 30 for the dollar’s daily cycle. The dollar is getting late in its timing band to seek out its daily cycle low. At this late stage, a swing high should mark the daily cycle peak and send the dollar into a daily cycle decline.

And the dollar dropping into a daily cycle decline should send gold higher.

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