Cycle Trading

Summary

• Miners printed their low last Monday on day 20, within the timing band for a daily cycle low (DCL).
• Last week’s break below the lower daily cycle band triggered a daily downtrend.
• A close back above the 10 day moving average confirmed day 20 as the DCL.
• Closing above the upper daily cycle band has renewed the daily uptrend.

The Miners printed their lowest point last week on Monday, day 20, placing them in their timing band for a daily cycle low.

Late last week, the Miners closed below the lower daily cycle band, which ended the daily uptrend and began a daily downtrend. However, that breakdown has now been fully negated.

While the Miners formed a swing low last week, price initially remained contained beneath the declining 10 day moving average. That changed at the start of this week.

The Miners closed above the 10 day moving average on Monday and followed through with another higher close on Tuesday. With a confirmed swing low and a close above the 10 day moving average, we will label day 20 as the daily cycle low.

Importantly, Tuesday’s move also pushed price back above the upper daily cycle band. Closing back above the upper band ends the daily downtrend and signals that the daily uptrend has been renewed.

This type of failed breakdown followed by a rapid recovery is constructive price action and suggests the Miners may be preparing to resume their broader bullish trend.

Takeaway

The Miners confirmed a day 20 daily cycle low and reclaimed the upper cycle band — signaling the daily uptrend is back in control.