Cycle Trading

Stocks closed at an all-time high last week then delivered bullish follow through on Monday.

Monday was day 19. The new high on day 19 shifts the odds towards a right translated daily cycle formation. Stocks are stretched above the 10 day MA. Stocks may need to consolidate to allow the 10 day MA time to catch up to price. Stocks are currently in a daily uptrend. Delivering bullish follow through indicates a continuation of its daily uptrend and signals a cycle band buy signal. Stops should be adjusted to a close below the breakout level.