Cycle Trading

The Miners formed a swing low on Thursday.

The Miners were stopped by resistance at the 200 day MA and declining trend line last week. They formed a swing high and broke lower, closing below the 10 day MA on Tuesday. The Miners have been in a daily downtrend. In real time, rejection at the 200 day MA on day 8 followed by closing below the 10 day MA on Tuesday looked is if the Miners were setting up for a left translated daily cycle formation which would continue the intermediate cycle decline.

However, the Miners recovered the 10 day MA on Wednesday. Then delivered bullish follow through by forming a swing low on Thursday. This sets the Miners for a possible test and breakout of of the 200 day MA. Those with a higher risk tolerance can enter long positions, using the 10 day MA as the stop. A safer entry would be waiting for a close above the 200 day MA.