Cycle Trading

The Miners had formed a swing low on Thursday, the 26th. But we still needed confirmation that the Miners had begun a new daily cycle.

The above chart was from Thursday’s report where we discussed how we wanted to see a close above the triple resistance of the 10 day MA, the 200 day MA and the declining trend line before we label day 25 as the DCL.

That has not yet happened.

The Miners did close above the 200 day MA on Friday but was contained by the 10 day MA. Then the Miners were rejected by the 10 day MA on Monday to drop close to 2% on the day. That makes Monday day 28 fo the daily Miner cycle, placing them deep in their timing band for a daily cycle low. Which increases the odds that the next swing low will mark the daily cycle low.

But the other thing that we are looking at is for the dollar to begin to decline into its daily cycle low.

The dollar did form a daily swing high on Monday. A peak on day 8 does potentially set up a left translated daily cycle formation. However the dollar also closed higher on Monday.

So here is what we are looking for:
1) A swing low on the Miners to signal the daily cycle low.
2) Then a close above the triple resistance of the 200 day MA, 10 DMA and the declining trend line.
2) Bearish follow through on the dollar sending it into its daily cycle decline.