Miner Break Through

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The Miners broke through the declining trend on Thursday.

gdx

The clear and convincing break above the declining trend line confirms that the Miners are in a new daily cycle. Thursday’s close above the upper daily cycle band ends the daily downtrend. I would not be surprised to see the Miners consolidate Thursday’s gain crawling along the 50 day MA before breaking higher.

And I think that it is no coincident that the Miners delivered the break of the declining trend line on the day that the dollar lost the 10 day MA.

$$$

Thursday was day 14 for the dollar’s daily cycle, just 4 days shy of entering its timing band for a daily cycle low. A peak on day 8 sets up a left translated daily cycle formation. Any bearish follow through will have us watching for a failed daily cycle. A break below 99.25 forms a failed daily cycle and confirms that the dollar has entered its intermediate cycle decline.

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