The daily chart shows price yesterday with a wide-range bullish bar that closed above all higher timeframe pivots and MAs. Price
thus far today has made a slightly higher high but has sold off and is currently
trading slightly below all but the weekly pivot.
Yesterday's action was
certainly that of price on the upside of the multi-day cycle, but was it
anything more than that? The blue MD MA is trying to curl upward, which would
indicate that price is on the upside of the multi-week cycle, but unless price
can regain its footing today that upward curl may not exist at the close. It is
also possible that we are entering into yet another triangle pattern, where price
continually chops through higher timeframe support and resistance and makes the
designations of cycle highs and lows a nightmare. Until proven otherwise,
however, I have no choice but to stick with my current designations which say
that price is on the downside of the multi-week, multi-month and
multi-year cycles.
The hourly chart shows price yesterday with a trend
day up, rising all day and trading above all higher timeframe resistance. Price
then dropped overnight and in pre-market trading and is currently attempting to
find soft support at the monthly pivot.
The strength of yesterday's move confirmed the
Friday low as a multi-day low. The inability of price to find support at the
daily pivot or 24Hr MA overnight indicates that yesterday's high was likely the
multi-day high. Price is overdue for a 24Hr low to be seen, and the monthly
pivot or weekly pivot below would be likely places for this low to be made. If
price is indeed on the downside of the MW, MM, and MY cycles, or just in the
midst of a triangle pattern, price is less likely to respect these pivots as
support. The ability of price to find support here and eclipse yesterday's high
would be bullish and cast more doubt on my bearish scenario.
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