Steel is Coiling

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Steel broke above the declining trend line to signal that Monday was day 5 for the new daily cycle. I would like to see a close above the declining 50 day MA to confirm the new daily cycle.

slx daily

Steel printed its lowest point last Tuesday, day 21, which places steel in its timing band for a DCL. If last Tuesday is confirmed as the daily cycle low that will mean that steel printed higher low from the May 18th low. A higher low would indicate that steel has completed the first daily cycle of a new intermediate cycle. We have been unable to confirm a new intermediate cycle because steel has been coiling below the 37.80 level for the past 8 weeks.

slx weekly

Steel appears to have printed a failed intermediate cycle low in May.
Steel printed its lowest point during the second week of May following the week 8 peak. 20 weeks places steel in its timing band for an intermediate cycle low. Steel is also in its timing band for forming a yearly cycle low. Once a new weekly cycle is confirmed it will signal that the new yearly cycle has begun.

Steel has been coiling below the the 37.80 level for the past 8 weeks. A close above the 37.80 level will confirm the new intermediate cycle and signal that steel has begun a new yearly cycle.

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One thought on “Steel is Coiling

  1. Pingback: The 6/29/17 Morning Update | Cycle Trading

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