The Miners broke out to a 3 month high on Tuesday. We have discussed previously that no trending move will be able to gain any traction until the Miners are able to close back above the declining 50 day MA and the Miners have now done that.
The Miners have not formed a clearly defined DCL since late September. The decline into the day 28 low did not satisfy the conditions for a DCL. Which makes Tuesday, day 31 for the daily cycle. The Miners rallied for over 17% over the past three days and are now stretched above the 10 day MA and the 50 day MA. They will likely need to consolidate this move. We could see a sideways consolidation but with the Miners being in their timing band for a DCL, we need to be alert for a daily cycle decline. Currently the Miners are in a daily uptrend. They will remain in their daily uptrend unless they close below the lower daily cycle band.
Cycle Trading 
Leave a comment