The Miners closed below the lower daily cycle band for the second straight day. There is a risk that the Miners are beginning a daily downtrend.
The Miners printed a narrow range lower low on Tuesday. At 22 days, that places the Miners in their timing band for a daily cycle low. So a swing low could signal a new daily cycle. A break above 23.42 will form a daily swing low.
By breaking below the day 24 low, there is a risk that the Miners printed a failed daily cycle and is beginning a decline into an intermediate cycle low. And based on the weekly cycle count, a decline into an intermediate cycle low from this point could last up to 14 or more weeks.
But there is the potential for a reward here. Since the narrow range day has eased the parameters for forming a daily swing low, a long position can be entered with a stop below Tuesday’s low, therefore minimizing risk.
The potential for reward rests with the possibility that day 24 was not the daily cycle low which would make Tuesday day 46. That would make this a right translated daily cycle, We would therefore have the expectation to see the Miners print a higher daily cycle high.