Ready to Test the Waters

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Gold formed a daily swing low on Monday.

1 gld

Gold printed its lowest point on Friday. At 34 days, that placed gold late in its timing band to print a daily cycle low. So Monday’s swing low makes it likely that Friday hosted gold’s daily cycle low. While we would like to see a close above the lower daily cycle band for confirmation of a new daily cycle, gold did deliver a TSI bullish crossover buy signal on Monday.

2 gld weekly

At 25 weeks, gold is also in its timing and to print an intermediate cycle low. A break above 1220.90 will form a weekly swing low off of the long term support/resistance 1175 level. And as we discussed here last week, gold is in its timing band for a yearly cycle low. So if a weekly swing low forms, it is quite likely that gold has left behind its yearly cycle low, as well.

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