Cycle Trading

The Miners broke out above short term resistance to a new daily cycle high on Monday.

The Miners are in a daily uptrend and will remain so unless they close below the lower daily cycle band. However, there are bearish divergences developing on the oscillators, which often herald the daily cycle decline. With Monday being day 30, that places the Miners in their timing band for a DCL. So we will need to be suspicious of any swing high going forward. And if the Miners reverse Monday’s gains and close back below the short term resistance that would signal the start of the daily cycle decline.