Cycle Trading

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The Miners have been printing a series of lower weekly highs and lower weekly lows since September, 2011. This week the Miners formed weekly a swing high after reversing off the declining 50 week MA. Was this a major or miner level of resistance?

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The Miners intermediate cycle has not rallied past 12 weeks since September, 2011. A break below the intermediate (gray) trend line would indicate that the 50 week MA was a major resistance level and that the Miners have begun their intermediate cycle decline.

However, the Miners formed a daily swing low on Friday. (The daily Miner chart can be found in the Weekend Report) With the daily Miner cycle being late in its timing band for a daily cycle low, Friday stands a good chance to mark the day 1 of a new daily cycle. Since this daily cycle formed in a right translated manner, we should see the Miners break above the previous daily cycle high of 23.22. That would cause the Miners to regain the weekly 50 MA and maintain a bullish outlook.

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