Cashing In on the 6-Day Cycle: Taking Profits and Waiting for the Next Setup

What a great trade this turned out to be. Last week I highlighted the 6-day cycle rhythm that has been clearly pulsing through this market, and it ended up playing out almost textbook. I’ve learned over time that when a cycle aligns with a well defined channel, it often creates a low-risk, high-reward opportunity. That was exactly the setup we had, and it was one of those moments where patience and structure really paid off.

When I initially wrote about the trade, my target was fairly straightforward, the top of the channel. I wasn’t trying to be overly aggressive or predictive beyond what the chart was giving me. Today, not only did price reach that area, it actually surpassed it, which is always a welcome surprise. With that move, I decided to take action and exited roughly 90% of my position. Locking in gains is never something I regret, especially when price has met and exceeded the original objective. I’ve kept a small piece on though, just in case momentum continues and the market wants to push a bit further.

Now my focus shifts to what comes next. The next 6-day cyclical low is projected for Wednesday morning, and that’s the key timing window I’m watching. Ideally, I’d like to see a controlled pullback into that window, potentially down toward the $9 area, which also happens to be the prior high. Former resistance turning into support is exactly the kind of behavior I want to see if this market is going to stay constructive.

If we do get that pullback late Tuesday or early Wednesday, I’m not interested in guessing. I’ll be watching closely for confirmation. A break of a short-term downtrend line, a bullish engulfing candle, and, most importantly, improving relative strength would all get my attention. Until then, there’s nothing to force. Trades like this work best when price, time, and structure all line up again. For now, I’ll stay patient, manage what’s left of the position, and let the market show its hand.

If you’d like to see the original analysis where I outlined the 6-day cycle and channel setup ahead of this move, you can read that post here.