Wednesday 9/9/2015

The daily chart shows price yesterday opening below the weekly pivot and MD MA but closing well above both and eclipsing the MW MA as well.  Price today has thus far made a higher high and is now trading above the monthly pivot.  This strong price move has turned the MD MA upward, which helps confirm that price saw yet another extremely early multi-week low last week and that price is on the upside of the MW cycle.

The higher MW low also means that the late August low was an early multi-month low, which has bullish implications.  It remains to be seen, however, whether price sees another early shift of its MW high, and whether price sees a similar half-span shift of its MM high. This would all take place in the formation of a triangle pattern on the charts, something we've seen quite a bit of lately.   In short, price action since the August low has been bullish, but the bulls are not out of the woods yet.

The hourly chart shows price yesterday making a 24Hr high before the NY open and making its 24Hr low five hours later above 24Hr MA support, a very bullish development that hints at the strength of the higher timeframe cycles (MD, MW and MM) supporting price.   We are slightly overdue for a 24Hr high, and it is possible that the high was seen several bars ago; if not, it will likely occur during the next Session high due near the NY open.  When the high is in, price will trade below the gold Session MA and turn that average downward as price searches for its 24Hr low (projected for late morning).

We are in the timeframe for price to see a multi-day high, so the odds are in favor of the next 24Hr high also being a MD high.  With a 24Hr low due so soon, price may need another 24Hr cycle before testing support at the MD MA/MW MA/weekly pivot confluence area, but I expect that area to be tested in the next few days before price makes its next multi-day low.