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Metals mining ETF $XME trade idea
Cyclical down move expected; breaking thru range
I see metals were run up last week artificially and failed to make their 20 day cycle target. I think the move through 52.00 down or resistance against 53.00 will be a catalyst for an acceleration down to 50.00. That would be reason to look for sellers again at 54.00.
I expect that the late day sellers will be correct and that both the cyclical failure and late day weakness will allow a trade against 53.00 premarket that can be held for a larger than average swing trade winner as it breaks through 50.00 into the next week.
Plan: getting below 52.00 and then 51.50 will signal a failure to the market on the daily chart and could possibly incite larger time frame selling due to its technical setup being in a monthly range at these prices. If volume is present, its a larger than average peak with an expected check of 50.00 right away. This volume will be the unwind from the spring up in buyers last week having to bail.