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Cycle Trading

Miner Bear Trap

The Miners printed their lowest point this week, week 30, placing them deep in their timing band for an ICL.

A weekly swing low is required as part of the confirmation of a new intermediate cycle. A break above 18.35 forms a weekly swing low. The Miners are in a weekly downtrend. They will remain in its downtrend unless they close above the upper weekly cycle band.

Gold did not follow the miners lower and break below the previous yearly low. Therefore I believe that the Miners are forming a bear trap, getting everybody on the wrong side of the boat.

And after such a lengthy consolidation, once this reverses this should ignite a powerful move higher.

2 responses to “Miner Bear Trap”

  1. Jonathan Swanzy Avatar
    Jonathan Swanzy

    Thanks for the extra post

    Reply
  2. Alex Avatar
    Alex

    Mind that after a bounce in miners and gold producing weekly swing lows as the dollar resumes lower this week, the dollar will chart a HCL as it gets closer to FOMC on Sep26 –> a dead cat bounce in dolloar likely to produce undercuts (hence fake weekly swing lows).
    Thus, gold under 1161? Quite likely after a weekly swing above 1222

    Reply

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