Cycle Trading

The Junior Miners are starting to look interesting. They rallied over 20% on Monday and over 23% on Tuesday. They did form a daily swing low but still haven’t recovered their 10 day MA. There is a good chance that they will need to retest the Friday low. But there is the possibility that they won’t.

Drilling down to the 30 minute chart we can see that GDXJ began an uptrend on the 30 minute cycle band, dipped a bit then renewed the 30 minute uptrend. In order to avoid using Friday’s low as the stop, long positions can be entered using the 50 MA on the 30 minute chart as the stop.