Cycle Trading

We discussed the Miners on Tuesday.

We observed that they had just broken above a multi year resistance level after slingshotting out of an historic oversold position. Once the Miners new daily cycle gains traction, that should deliver a powerful trending move. But the Miners seem to be waiting for gold to cross the line.

Day 25 remains as the lowest point following the day 20 peak. The decline into the day 25 low did not cause the 10 day MA to turn lower. But since forming the declining cycle trend line on day 27, gold has been contained by the declining 10 day MA — until Thursday. A break above the declining trend line will have us label day 25 and the daily cycle low.