The daily chart shows price continuing to power
higher on the upside of the multi-week, multi-month and most assuredly the
muliti-year cycle. Price rocketed yesterday on promises out of Europe for more
cheap money and the possibility of negative interest rates. Prices today have
made a higher low and higher high on news that China has cut interest rates.
The global economies are so gloomy that the market needs to wear shades.
Price is currently testing the upper channel line
and July/August congestion resistance. We are
overdue for a multi-month high to be seen, and the extension in time as well as
the strength shown during this rally are key reasons to believe that the August
low was also the multi-year low. A multi-week high is projected for 11/4; it is
possible that the overdue turn of the multi-month cycle will cause an early MW
high anywhere from today through Tuesday, but it is just as likely that we will
see a normal length or even a prolonged MW cycle.
Despite the strength of the market, the multi-month
cycle will eventually roll over, and this will provide a decent swing short but
an even better opportunity to get long. It is vital that no shorts be attempted
until price closes below the MD MA and turns that average
downward.
The hourly chart shows price surging above 24Hr MA,
daily pivot, and MD MA resistance yesterday and never looking back. This is
behavior indicative of price being on the upside of the MD cycle, and I have
marked the prior 24Hr high and low as a MD high and low. Price overnight made a
24Hr low far above the 24Hr MA and daily pivot, another sign of the underlying
strength of the longer timeframe cycles pushing this market higher. We are due
for a Session low sometime near the market open; price should find support for
this low on or above the gold Session MA and then move higher until the close,
as the 24Hr high is not projected until then.
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