Thursday 5/28/2015

The daily chart shows price yesterday making a lower high and higher low versus the prior day, finding support on the MW MA but resistance at the MD MA and weekly pivot. Price thus far today has opened above the daily pivot but appears to have found resistance at the MD MA. This is behavior indicative of price being on the downside of the multi-week cycle. The MW low is projected for today, but the low could have already been made Tuesday when price touched the MM MA. Until price can close above the MD MA, however, there is no evidence that the MW low is behind us; it is equally likely that the MW low could extend further in time and that we will retest Tuesday's low before it is seen.

The hourly chart shows price yesterday rising throughout the trading day before finding its 24Hr high near the close under weekly pivot resistance. Price overnight dropped back below the MD MA and has been bouncing between daily pivot and MW MA support and MD MA resistance. We are overdue for the 24Hr low, and it is possible the low was made overnight at the daily pivot. This is behavior indicative of being on the upside of the multi-day cycle, but we are currently overdue for a MD high.

Where price goes from here depends on where we are in the multi-week cycle. If we are still on the downside of the MW cycle, price should break daily pivot and MW MA support and retest Tuesday's low. If we are on the upside of the MW cycle, MW MA support should hold and price will break MD MA and weekly pivot resistance.