A Miner Thought

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The Miners lost the 50 day MA on Tuesday, day 12, producing a failed daily cycle. With the Miners being 5 days shy of their timing band for a daily cycle low the expectation would be to see the Miners continue to drop.

gdx

Instead dropping they delivered a surprise by printing a bullish reversal. I suspect that we will see a tag of the 50 day MA before the Miners continue lower.

However if the Miners regain the 50 day MA and then go on to break above the declining trend line, we will be forced to consider a shortened 13 day, daily cycle low may have formed.

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2 thoughts on “A Miner Thought

  1. Any idea where we are in the intermediate cycle? Are you expecting a left translated DC if your new theory proves correct?

    • The Miners are on week 11 for their intermediate cycle.
      And the Miners broke below the weekly trend line.

      weekly gdx

      At this point a new daily cycle would likely form as a left translated cycle.

      But here are two things that we need to watch.
      Gold has not (yet) broke below its intermediate trend line.

      And gold has formed a swing low this morning off the day 17 candle …

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