Tuesday 8/4/2015

The daily chart shows price yesterday opening below the daily pivot and making a lower high, lower low and lower low versus the prior candle. Price thus far today has opened below the daily pivot and is testing the weekly pivot/monthly pivot convergence for support. Price is unquestionably on the downside of the multi-day cycle; if price is still on the upside of the multi-week cycle then price should find support in this area and rally back above the MD MA before that average turns downward. If this occurs in the next day or two, my expectation is that price will see a strong rally to new highs before the next projected MW and MM highs in mid-August.

The hourly chart shows price making a 24Hr high yesterday at daily pivot resistance in pre-NY open trading and then falling sharply down to the weekly pivot/monthly pivot convergence area which provided soft support to put in the 24Hr low. Price in overnight trading has continually found resistance at the daily pivot or 24Hr MA, indicating price is still on the downside of the MD cycle. We are overdue for a MD low, and the weekly/monthly pivot convergence area is a logical place for this low to be found. It is possible that yesterday will prove to be the MD low, but price must make a higher 24Hr low to confirm this. While the 24Hr low is not projected until mid-afternoon today, it is possible that the higher timeframe pivots will provide support to put this low in early. Should price break above the daily pivot and take out the overnight high, it will indicate that price is on the upside of the MD cycle. When this happens, I would expect price to rise sharply as it should then be on the upside of the MD, MW, and MM cycles.