Cycle Trading

In Monday’s report we discussed how the Miners are in a daily uptrend and a daily swing low would allow them to remain in their daily uptrend. Well, the Miners closed lower on Tuesday which gives me some minor concerns.

Tuesday was day 21 for the daily Miner cycle. Tuesday’s drop caused the Miners to close below the 50 day MA. They also closed below the lower daily cycle band which signals an end of the daily uptrend. If the Miners break below the previous daily cycle low of 27.45 that would form a failed daily cycle.

So unless the Miners reverse immediately they are at risk of this developing into a daily downtrend. There are also concerns developing on the weekly chart.

The Miners did form a weekly swing high last week. This week they broke below the intermediate cycle trend line which signals an intermediate cycle decline. If the Miners close out the week below the upper weekly cycle band that would provide more confirmation of an intermediate cycle decline. This is week 13 for the intermediate Miner cycle. Assuming that the Miners will print a daily cycle low this week, that still allows enough time for one more daily cycle to bring the weekly cycle into its timing band for an intermediate cycle low. So potentially we could see the next daily cycle develop as a left translated, failed daily cycle that would lead into an intermediate cycle decline.