Miner Update

The Miners printed their lowest point on 10/15. The Miners finally closed above the 10 day MA on Thursday and delivered bullish follow through on Friday to signal that 10/15 was day daily cycle low.

But the Miner got a bit stretched above the 10 day MA and saw some profit taking on Monday and Tuesday, which allowed the 10 day MA to catch up to price. But the Miners closed for a gain on Tuesday. If the Miners deliver bullish flow though and form a swing low off of Tuesday’s candle, that will allow us to construct the daily cycle trend line.

And the Junior Miners also looked bullish on Tuesday.

Like the Miners, the Junior Miners saw some profit taking after tagging the 50 day MA. But where the Miners only closed higher, the Junior Miners printed a bullish engulfing candle signaling that the Juniors are ready to trend higher.

Major Opportunity


The Miners have rallied over 17.00 % since the daily cycle low that printed on May 29th. Today they gapped higher, rallying for over 5% alone today and printing today’s candle above the Bollinger Band. So the Miners are getting overbought and are in need for a breather.

gdx bollingerhttp://postimg.org/image/lbkekszzr/

Below we can see that the True Strength Indicator has exceeded the level that has seen all other daily cycles turned back.

gdx tsihttp://postimg.org/image/6dgf6plnv/

This kind of pace is unsustainable. And the timing band for a daily cycle low only three days away …

gdx scenariohttp://postimg.org/image/hy4yaawkz/

A possible scenario is to see the Miners break higher again on Friday before reversing. Then a brief daily cycle decline that sees the Miners backtest the 200 day MA as it prints its daily cycle low before continuing higher.

While the Miners have been impressive, the Junior Miners have been better.

gdxj gdxhttp://postimg.org/image/9vsf33mjv/

Out of the December intermediate low, the Junior’s out gained the Miners 59% to 38%. And the current rally has the Juniors out gaining the Miners 34% to 17%.

The may be Junior Miners but they offer a Major Opportunity …