Danger Zone

0http://postimg.org/image/dyx4wj69v/

The Miners are in a danger zone.

gdxhttp://postimg.org/image/mdhru8bcb/

The Miners printed a daily cycle low last Wednesday, November 5th. A swing low formed the next day. While the Miners have delivered some bullish follow through, the Miners need a clear and convincing break above the declining trend line to break through this danger zone.

And even if the Miners break above the declining trend line there is one more critical area, the declining 50 MA. A break above the declining 50 MA signals a change in trend. Then a break above the previous daily cycle high of 22.16 forms breaks the pattern of lower highs.

Advertisements

One thought on “Danger Zone

  1. Pingback: Deciphering the Dollar | Cycle Trading

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s