Potential Intermediate-term Signal: Gold Market Cycle Analysis

| October 17, 2013

The strong advance this week has caused both intermediate-term cycle oscillators to experience bullish crossovers and a bullish engulf pattern has formed on the weekly chart. A weekly close above 1,323 tomorrow would generate a cycle low signal and indicate that the latest intermediate-term cycle low (ITCL) likely formed during the week ending October 11.

As we have noted in recent updates, the formation of the latest ITCL well above the previous ITCL in July would be the first step in the development of a long-term bottom that would mark the termination of the cyclical downtrend from 2011. Therefore, it will be important to monitor market behavior closely tomorrow for this potentially significant long-term signal.

Category: Gold, Signals

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