Good morning for Monday, July 9th. The monthly chart shows price this candle having thus far made a higher high and higher low, trading above the monthly pivot and currently testing MM MA support. If we are still on the upside of the multi-year cycle, price should find support at the MM MA or monthly pivot and eventually retest the March highs. Failure to do so will indicate the March high was also a multi-year high, and price would be expected to take out the June lows.
The weekly chart shows price last week having made a higher high and higher low and finding support on the MW MA. This week's bar has opened below the weekly pivot and is once again testing MW MA support. We are well past projection for a multi-month high to be made; making a lower MM high would be bearish and indicate we are on the downside of the multi-month cycle. The area boxed in white shows the precipitous drop from the previous lower MM high in July 2011. It is far too early in the weekly candle to draw any conclusions from it, however, so we could still be on the upside of the MM cycle and continue making higher weekly highs by week's end.
The daily chart shows price last week making a lower high and lower low on Friday, opening below the daily pivot and closing below the MD MA. Price today has opened below the daily pivot and tested Friday's lows. The MW high had been projected for last Wednesday, which was the July 4th holiday. It is likely that Thursday was the MW high, as we are trading below the weekly pivot and the MD MA has turned down (though a sharp rally today could change the slope of the MD MA). A MW low is projected for tomorrow; if price can find support at the MW MA for its MM low, it would ibe a good indication that we are still on the upside of the MM cycle.
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