Cycle Trading: Miner Potential

The dollar has not yet confirmed a new daily cycle.

The dollar printed its lowest point on Monday, breaking below its previous daily cycle low to form a failed daily cycle to confirm that the intermediate cycle is in decline. Monday was day 30, which places the dollar deep in its timing band for a daily cycle low.

So Tuesday’s swing low has good odds of marking the daily cycle low. While the dollar breached the declining trend line, it needs to break convincingly above the declining trend line to confirm a day 30 DCL.  However any dollar rally is likely to be short lived.  The dollar is in a confirmed intermediate cycle decline.  Therefore our expectation is for the new daily cycle to form as a left translated, failed daily cycle. 

And the dollar declining into an intermediate cycle low is typically bullish for precious.

Thursday was day 18 for the daily Miner cycle.  That places the Miners in their timing band for a DCL.  A break above 22.53 forms a swing low.  Then a close above the 10 day MA would confirm the new daily cycle.

The Miners can potentially form a right translated cycle that prints a higher low.  That would indicate that November did host the intermediate cycle low and that the Miners are beginning a new daily uptrend.  The Miners would then need to close are the upper daily cycle band in order to establish a new daily uptrend.