Cycle Trading

The Miners closed above the upper daily cycle band on Tuesday, causing them to become stretched above the 10 day MA  

The Miners then formed a swing high on Wednesday and remained above the 50 day MA on Thursday – but then closed below the 50 day MA on Friday.

After finally closing above the 50 day MA — closing below the 50 day MA on Friday is a bearish development. The Miners need to regain the 50 day MA in order for a bullish trend to gain any traction. A close below the 10 day MA would signal a false breakout and set the Miners up for a left translated daily cycle formation.  The Miners are currently in a daily uptrend.  If they form a swing low above the lower daily cycle band that will indicate that they will remain in their daily uptrend and signal a cycle band buy signal. 

In summary, closing below the 50 day MA on Friday sets the Miners up for a potential false breakout. However, there were bullish developments on the longer term weekly and monthly charts which I discuss in the Weekend Report.