Wednesday 6/24/2015

The daily chart shows price yesterday making an "inside" candle at the upper range of the prior day's candle. Price today has thus far made a lower high and lower low versus Tuesday, trading below the daily pivot and testing the MD MA. Today's action is indicative of price being on the downside of the multi-day cycle. Since we are overdue for a multi-week high, we must also be wary that Monday's high was a multi-week high as well as a multi-day high. If so, price will trade below the MD MA and turn that average downward as price looks for support for its MW low (projected for July 1st); the pink MM MA or the confluence area of the MW MA and weekly and monthly pivots are logical areas for the MW low to be made. If Tuesday was not a MW high, price will find support here at the MD MA and have one or more multi-day cycles before finding its MW high. As discussed in yesterday's blog post, new all-time highs are expected for this market, either in the current multi-week cycle or the next. Failure to achieve this opens the door for a bearish scenario which will be discussed if warranted by price action.

The hourly chart shows price making numerous 24Hr highs in the same 2118-2120 area. Price has finally broken 24Hr MA/daily pivot support and tested the blue MD MA a few bars ago. This area was mentioned yesterday and is the normal testing area for price on the downside of the multi-day cycle. Should price also be on the downside of the MW cycle, price will break below the MD MA and probe lower to the support areas mentioned above.

The 24Hr cycles have seen several abnormally short lengths the past few days. If we were to use the average of the past five cycle lows, the 24Hr low was projected for a couple of bars ago, when price tested the MD MA. A normal cycle length would have the 24Hr low being made in the early afternoon. Watch the gold Session MA for indications of whether the 24Hr low has been made; if it acts as resistance for price as it has done the last several bars, it indicates that price is still on the downside of the 24Hr cycle. A break above the Session MA and a turning of that average upward will indicate that the 24Hr low is behind us and we are on the upside of the 24Hr cycle.