Friday 3/20/15

The daily chart shows price yesterday making a lower high and higher low, an inside day, closing just below the daily pivot. Price thus far today has opened below the daily pivot but is currently trading above it, challenging yesterday's highs. We are currently in a Monday low/Wednesday high situation (ML/WH), which often marks multi-week highs. With the next MW low due 3/31, it would be normal to see a center- or right-translated MW high if we are on the upside of the MM cycle; thus, the overdue MW high is a bullish sign. It is important (and expected) that price makes new highs for the week today to eliminate concerns of the ML/WH ( and thus possible MW high) situation.

The hourly chart shows price making a 24Hr low at noon yesterday, two bars before projection. Price then spent the next 17 hrs finding resistance under Thursday's daily pivot then Friday's daily pivot before finally breaking above it. Price is overdue for a 24Hr high, and a 24Hr low is due at noon. The extended action below the daily pivots argues for a possible multi-day high being made before Thursday's open, with a MD low being made yesterday. This would also explain the overdue 24Hr high, as price usually right-translates 24Hr highs coming out of a MD low. It is possible that the high will be found at the time of the expected 24Hr low (an inversion), but it would not surprise me to see price continue higher until the close. A negative possibility is that price makes a double top with recent high, indicating at least a MD high in the making and possible the overdue MW high. Currently the ball is in the bull's court, however, so I expect new highs for the week to be made today. This would mean any pullback to the gold session MA (one should occur near the open) would be a buying opportunity. Failure of the session MA to provide support on the pullback would indicate the overdue 24Hr high is in.