Potential Short-term Signal: Gold Market Cycle Analysis

| March 8, 2012

The rebound today has caused both cycle analysis price oscillators to experience bullish crossovers and a bullish engulf pattern has formed on the daily chart. A close near current levels would generate a cycle low signal, indicating that the latest short-term cycle low (STCL) likely occurred on March 6.

A weak alpha phase rally followed by a quick move below the developing STCL would reconfirm left translation and favor additional short-term weakness. Alternatively, a strong move up toward the previous beta high (BH) near $1,786 would suggest that cycle translation is in question.

Category: Gold, Signals


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