Thursday 3/12/15

The daily candle shows price having made a lower high and lower low yesterday as price continues on the backside of the multi-week and multi-day cycles. We are currently in a Monday High, Thursday Low situation which is fairly common in a downtrend. For reasons discussed in Monday's post pertaining to the Monthly cycle, I still feel it is very important that price rebound in the two remaining trading days and close above the level of the multi-month MA on the weekly chart (~ 2052.00 level) if not the monthly pivot at 2064.75. Thus far, price shows no signs of doing this, opening below the daily pivot and making a lower low than yesterday.

The hourly chart shows price having made a 24Hr low exactly 24 bars after it's prior 24Hr low then breaking the blue downtrend line drawn from the prior multi-day high through subsequent 24Hr highs. This is the first sign that yesterday's low was possibly the overdue MD low (and likely the MW low as well). The 24Hr high is past due, but coming out of a MD and MW low it is normal that this high should extend in time. Price so far is finding support on the 24Hr MA and daily pivot. I expect this support to hold and price to take out yesterday's high and test resistance in the area of the monthly pivot (2064.75) or MD MA (currently 2067.50 and falling).

A break of the gold session MA on an hourly close should signify that the 24Hr high has been made.