Cycle Trading: Miner Alignment
|The Miners formed a swing low on Monday.
The Miners printed their lowest point on Friday, day 13, which is early to expect a daily cycle low. However the Miners delivered a bullish signal by closing back above the 50 day MA. Now a close above the 10 day MA would have us label day 13 as the DCL.
While we cannot, at this point, be certain that the Miners have printed their daily cycle low, alignment from both gold and the dollar makes this a more likely scenario.
Gold printed its lowest point on Monday, following the day 15 peak. Monday was day 43, placing gold deep in its timing band for a daily cycle low. Monday's bullish reversal also eases the parameters for forming a DCL. A break above 122.53 forms a swing low to signal a new daily cycle.
The dollar's daily cycle appears to have topped which would be in alignment with gold printed a DCL.
Monday was day 24 for the dollar's daily cycle. Bearish divergences are developing on then momentum oscillators which we normally see during a cycle top. And Monday the dollar also printed a doji, which often heralds a change.A break below 93.42 will form a daily swing high and then a break of the daily cycle trend line will confirm the daily cycle decline.
In the Weekend Report I plan to break down the dollar's longer term 3 year and 15 year cycles and how that relates to gold.
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.