Cycle Trading: A Miner Rally
|Last week we discussed how the Miners formed a daily cycle low. We also discussed that the dollar emerging out of a potential yearly cycle low would likely cause a left translated cycle formation. So today I wanted to take a follow up look at the Miners.
The Miners did close above the 50 day MA on Friday and provided more bullish follow through on Tuesday. However the Miners printed 170 million SOS on Friday and 108 million SOS on Monday. Typically these types of Selling on Strength numbers are associated with an intermediate cycle decline.
Tuesday was day 6 for the daily Miner cycle and the Miners printed another higher high. But, Tuesday's bearish engulfing candle eases the parameters for forming a swing high. Since the Miners are already in a daily downtrend, a swing high here will allow the Miners to remain in their daily downtrend. A break below 23.53 would form a daily swing high. The Miners will continue in their daily downtrend unless they close above the upper daily cycle band.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.