Cycle Trading

Today we will take a quick look at the long term picture of the Transports and Steel.

Until recently the transports have been contained by a multi year consolidation.

Until recently, steel have been contained by a multi year resistance level.

Both the transports and steel are in the process of backtesting their respective breakouts. The formation of a weekly swing low will indicate a successful backtest of their respective recent breakouts. Both are in a weekly uptrend. So if a weekly swing low forms above the lower cycle band, they would remain in their uptrends and trigger a cycle band buy signal.