Miner Bounce

The Miners formed a swing low on Monday.

The Miners printed their lowest point on day 58. While the Miners did form a swing low, they did not close above the 10 MA. A close above the 10 day MA will have us label day 58 as the DCL. The Miners should then go on to break above the declining trend line as it rallies out of its DCL.

What we need to see is a convincing close above the 50 day MA that has bullish follow through to signal that the Miners are ready for a trending move. Back in early January the Miners did manage to close above the 50 day MA. However, they were not able to deliver bullish follow through. Unless the Miners can close convincingly above the 50 day MA and deliver bullish follow through, this will only be a minor bounce.

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