Cycle Trading: Miner Update
|When we last discussed the Miners it appeared that they were forming their daily cycle low.
The Miners printed their lowest point last Tuesday, day 29. A swing low formed the next day signaling a new daily cycle. The Miners closed out the week above the 10 day MA confirming the new daily cycle.
Notice that the Miners began to close above the upper daily cycle band prior to declining into the day 29 DCL. Closing above the upper daily cycle band signals a new daily uptrend. The Miners did not close below the lower daily cycle band as they declined into the day 29 low. Therefore forming a swing low above the lower daily cycle band triggered a cycle band buy signal.
The Miners did break lower on Tuesday. But they managed to rally into the close, printing a bullish reversal candle. The Miners have been contained by the 200 day MA since emerging from its daily cycle low. It looks like the Miners are setting up for a break above the 200 MA. A close back above the upper daily cycle band will confirm the new daily uptrend.
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