Often times we see the Miners lead gold out of a cycle low and perhaps mistakenly think that the tail is wagging the dog.
Thursday was day 18 for the daily Miner cycle. The Miners broke below the previous daily cycle low today producing a failed daily cycle. And in cycle theory, a failed daily cycle indicates that the intermediate cycle is in decline.
But we need to keep in mind that gold is the Big Dog that drives the precious metal market.
Gold is in its timing band to print a daily cycle low. Gold has back tested the declining trend line and closed above the 50 day MA. If gold can form a swing low here, that would be a very bullish signal. Keep in mind that Gold’s daily cycle did not fail. So if gold begins a new daily cycle here then that should cause the Miners to rally.
I posted a Special Miner Update tonight for Subscribers. In the update I take a closer look at a possible bullish scenario that is developing with the Miners.
The Special Miner Update can be found at Likesmoney Subscription Services
For subscribers click here.