Cycle Trading

PRE-SUMMARY

The Miners have confirmed a daily cycle low and are now testing resistance as the rally begins to stretch above the 10-day moving average.

The Miners printed their lowest point on day 56, placing them very deep in their timing band for a DCL. A swing low formed on Thursday and price continued to recover into Friday, but remained contained below the declining 10-day moving average.That changed on Monday when the Miners gapped higher and closed above the 10-day moving average. This signals day 56 as the DCL and confirms the start of a new daily cycle advance.

The rally has carried the Miners above the 10-day moving average and into resistance at the 200-day moving average. The Miners are becoming stretched above the 10-day moving average and may need additional consolidation, helping to allow the moving average time to catch up. What did not happen was a rejection back below the 10-day moving average following Thursday’s swing low. Instead, buyers followed through with a higher close above the moving average, completing the DCL confirmation signal.  The key trigger now is the upper daily cycle band. The Miners remain in a daily downtrend. However, a close above the upper daily cycle band will end the daily downtrend and begin a new daily uptrend.

CYCLE ALIGNMENT

• Mixed