Cycle Trading: Miner Timing Band
|The Miners formed a swing high on Thursday.
Thursday was day 21 for the daily Miner cycle. And 21 days places them in their timing band for a DCL. (A case could be made that the 13 day DCL is part of this daily cycle making Thursday day 34). At this point any bearish follow through will signal that the daily cycle is in decline. We will need to keep in mind that the Miners are in a daily uptrend. Therefore, once they begin their daily cycle decline, if they form a swing low above the lower daily cycle band they will remain in their uptrend.
The dollar rallying out of a daily cycle low is, in part, causing this volatility in the Miners.
The dollar's daily cycle peaked on day 7. A swing high formed on day 8. The dollar also closed below both the 50 day MA and the 10 day MA on day 8 confirming the daily cycle decline.
The dollar printed its lowest point on Tuesday, day 14, which is normally too early to expect a daily cycle low. However the dollar formed a swing low on Wednesday and then delivered bullish follow through on Thursday. The dollar managed to close above both the 10 day MA & the 50 day MA on Thursday which will have us label day 14 as the DCL.
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