The daily chart shows price yesterday making a
lower high and sharply lower low versus Tuesday's candle, but closing slightly
higher on the day. Price today has opened above the daily pivot and is thus far
trading above yesterday's close.
Yesterday's sharp reversal off the lows kept the
triangle pattern more or less intact, but with the increased volatility and the
narrowing of the triangle a conclusion is likely to come soon. It remains to be
seen if yesterday's low proves to be an early multi-week low; the MW low was
projected for next week but the early prior MW high and the unfolding triangle
pattern make it possible that the MW low is already in. If so, price would
normally be expected to move upward and turn the blue MD MA upward with it. In
a triangle pattern, however, things are rarely normal.
The hourly chart shows price trading down to a 24Hr
low in the 11:00am hour and then rallying sharply for the remainder of the day
before finding resistance at yesterday's daily pivot. Price traded slightly
higher overnight to test the green MW MA where it appears it may have put in a
24Hr high. Price appears to be falling into its 24Hr low which is projected for
late morning.
The strength of yesterday's move out of the morning
low indicates that yesterday was likely a multi-day low. If price is still on
the upside of the MD cycle then price should find support for its 24Hr low at
the 24Hr MA/MD MA/weekly pivot confluence area at the 2080 area, or at the daily
pivot at 2071.50. Because of the triangle pattern, we must be aware that the
early morning 24Hr high may also have been a MD high, in which case price would
not find support at these levels and could trade down to retest yesterday's
low.
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