Miners Are Making An “Outside Reversal”

Miners are making an “outside reversal” today. That is when prices trade both above and below the previous day’s session. Similar to the day of the $25.93 high. Under normal circumstance, I would begin to enter long-positions today anticipating the bottom of common cycle low #1. However, prices could open dramatically higher or lower tomorrow, and therefore too risky for my liking.

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Note: Because miners dropped to a new low today prices will now need to close above today’s high ($24.68) to form a confirmed price swing. A confirmed price swing customarily signals the cycle low and gives us a defined stop loss.