Gold Short Term Cycles

Cycles

The next cycle turn is March 13th (plus or minus 72 hours). The February red cycle was hit right on the head.

Last week we said if there was no cycle inversion then resistance was the 200 day average at 1263-1272 & the 2011 downtrend line. The high came in at 1263.

One of the 2 options laid out last week was a cycle inversion could be forming that would transform the rotation to a blue cycle low (BULLISH).

IF this is playing out it removes a big concern we’ve had for gold and that’s red cycle lows. Real sustained bull markets are when we see blue cycle lows.

While this would call for another week of pullback in gold, it would be setting up for a blue cycle low. That is the rotation we want to see when gold is in a bullish configuration.

Cycles continued

In this scenario, cycles peaked here at the red cycle (Feb 27th – plus or minus 72 hours) and gold is in a pullback into the blue cycle low due March 13th (plus or minus 72 hours). From there the rally resumes higher.