Potential Short-term Signal: Gold Market Cycle Analysis

| January 30, 2013

The strong advance today has caused both cycle analysis price oscillators to experience bullish crossovers and a bullish engulf pattern has formed on the daily chart. In the absence of a sharp decline into the close that returns to the close of the previous session, a cycle low signal will be generated today, confirming that the latest short-term cycle low (STCL) formed on January 28.

A brief, weak alpha phase rally of less than 5 sessions in duration followed by an extended alpha phase decline that moves well below the last STCL would reconfirm the current bearish translation and favor additional short-term weakness. Alternatively, an extended alpha phase rally of more than 5 sessions in duration that moves above the last beta high (BH) would signal the likely transition to a bullish translation.

Category: Gold, Signals


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