Cycle Trading

The Miners formed a swing high and closed below the 10 day MA on Friday, signaling the daily cycle decline. That bearish setup was confirmed as the Miners followed through with a sharp 9.42% drop on Tuesday.

Tuesday marked day 23, placing the Miners in the early part of their timing band for a DCL. From a cycle perspective, this is the window where we typically look for signs of stabilization. The rising 50 day MA may offer potential support for the DCL to form — but if that level fails, attention shifts to the prior daily cycle low at 67.25.

A break below 67.25 would form a failed daily cycle and confirm that the intermediate cycle decline is underway. The Miners remain in a daily uptrend for now, but a close below the lower daily cycle band would end that uptrend and begin a daily downtrend. Such a move would also confirm that the intermediate cycle decline has started.