Miner Problems

00http://postimg.org/image/atblxglcx/

The bullish reversal printed the previous week broke above the declining trend line signaling a new daily cycle.

41 miners dailyhttp://postimg.org/image/6nm3lecdr/

The Miners have not yet formed a daily swing low, which is concerning. Since that bullish reversal the Miners have drifted sideways. They printed the highest point since the bullish reversal on Wednesday. The Miners drifted lower on Thursday and made a bearish break on Friday. This is beginning to look a lot like the high volume reversal from last year.

40 gdxhttp://postimg.org/image/ui51k1zjh/

Last year the Miners printed a high volume surge that reversed in a few days, leading to a failed daily cycle.

00gdxhttp://postimg.org/image/q47i00p3d/

Back to the current chart. The Miners formed a swing high off of Wednesday’s candle. The bearish follow through on Friday was accompanied by a bearish TSI crossover which signals that the daily cycle is in decline. At day 9, the Miners have another 2 to 3 weeks before finding their daily cycle low.

One metal has already printed a failed daily cycle.

pallhttp://postimg.org/image/qxvs117bn/

Palladium often leads the precious metals sector. Palladium’s daily cycle peaked on day 2, where it was rejected by the 200 day MA. A swing high formed the following day. On Wednesday Palladium reversed off the declining trend line and Thursday saw Palladium break below the previous daily cycle low, forming a failed daily cycle.

As we stated that Palladium often leads the precious metals sector. With the Miners printing that bearish break on Friday, it seems that the are destined to follow suit.

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