Despite the possibility for a daily cycle bounce, the time is not right to close my gold short. First, we have no assurance that such a bounce will materialize presently. More importantly, however, the weekly cycle is not yet finished with its work.
Weekly gold cycles usually find there lows between Weeks 18-24. So even if the current daily cycle ran a few more days, gold would need yet another daily cycle to reach a weekly cycle low within the normal time frame.
The $1150 pivot should provide formidable support, so I suspect we will see a new daily cycle form before price breaks that level. As noted above, the time is not right to jettison my short. Instead, I am hunting a spot to augment the position ahead of a final decline into a weekly cycle low.