Miner Traction

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Last night we discussed how the dollar may be preventing gold from gaining any traction. Tonight we will look at the Miners.

gdx weekly

The Miners printed there lowest point during week 18, following the week 15 peak. Week 18 does place the Miners in their timing band for an intermediate cycle low. The Miners have formed a weekly swing low, but a break of the declining weekly trend line is needed to confirm a new intermediate cycle has begun.

However the Miners seem to be losing traction.

gdx

The Miner broke convincingly above the declining trend line on Friday to declare a new daily cycle. The Miners printed a higher high on Monday but they printed a bearish reversal on Tuesday. Left translated daily cycles tend to rollover by day 8. A break below 24.84 forms a daily swing high and sets up a potential left translated cycle formation.

If the dollar rally begins to get some traction that should cause the Miners to beak lower.

$$$

The dollar printed its lowest point on Monday, day 23,following the day 20 peak. That places the dollar in its timing band for a daily cycle low. The narrow range day on Monday has eased the parameters for forming a swing low. A break above 94.26 will form a swing low to signal a new daily dollar cycle.

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