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Cycle Trading

Stocks Formed A Swing Low

Stocks formed a swing low on Tuesday.

Stocks broke below the previous DCL on Monday to form a failed daly cycle. Monday was day 44, placing stocks deep in its timing band for a DCL. Tuesday’s swing low potentially signals day 44 as the DCL.

However …

… the decline into the day 44 low has caused the 10 day MA to decline sharply. Stocks may find resistance initially at the 10 day MA and turn back lower. We will be watching for a close above the 10 day MA to label day 44 as the DCL.

2 responses to “Stocks Formed A Swing Low”

  1. Cihan Avatar
    Cihan

    could it be DCL on day 37 and day 6 high in new cycle?

    Reply
    1. likesmoneystudies Avatar
      likesmoneystudies

      The short answer is yes, it could be.
      Day 37 was in the timing band for the DCL and stocks managed to close above the 10 MA.
      Because stocks did not manage to turn the 10 day MA higher before breaking lower is why I have Monday as day 44.
      LM

      Reply

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