Cycle Trading

The Miners daily cycle peaked on day 12 where it is was rejected by the 50 day MA. The Miners went on to print its lowest point last Wednesday, breaking below the previous daily cycle low and forming a failed daily cycle.

The Miners formed a swing low on Thursday and closed above the lower cycle band on Friday which signals a new daily cycle. While the weak close today is concerning, at this point the daily cycle is still developing bullishly. Which is easier to see using a 30 minute chart.

Notice on the left side of the chart the Miners are rallying into the day 12 peak. During the ascent the Miners continued to find support along the lower cycle band. The bearish reversal that caused the Miners to close below the lower cycle band signaled the daily cycle decline. During the daily cycle decline the Miners did not close above the upper cycle band.

Then last Thursday the Miners closed above the upper cycle band on the 30 minute chart, which signaled a new uptrend. Once again we see the lower cycle band acting as support. The next bullish task for the Miners is to break above the 200 MA on the 30 minute chart.

Now a quick word regarding the CRB and Oil.

Both the CRB and Oil managed to close above the upper daily cycle band today. This is an early indicator that both are leaving behind an intermediate cycle low.