Friday 10/9/2015

The daily chart shows price making a relentless move higher on the upside of the multi-week and multi-month cycles.  While originally there was some question as to whether the 9/17 MW high was also a MM high, price has answered definitively that it was not.  So price continues to search for its overdue MW high, in the timeframe to also see its MM high (projected for this week).  Just as the MM cycle has caused the MW cycle to extend, it is possible that the MM cycle may extend as well if the multi-year low was seen in August.  The green dashed upper channel boundary, once a pipe dream target for this MW cycle, now looks very achievable.

The hourly chart has become very difficult to analyze as the daily and multi-day cycles have been steamrolled by the strength of the MW and MM cycles.  It is possible that price saw a 24Hr high in overnight trading, followed a few hours later by a 24Hr low made well above 24Hr MA/daily pivot support.  If so, it is yet a further display of the strength of the larger timeframe cycles, similar to when the MD low was made far above the MD MA.   If so (and likely even if it weren't), we should expect a trend day up today with price rising throughout the day.

The next multi-day high is projected for Monday. Given that we are overdue for a MW high to be seen and are in the window to expect a MM high, it becomes more likely that the next MD high will also be a MW and MM high. Despite the great strength shown in this rally off the lows, the move down from the next MM high should provide an excellent shorting opportunity. If August was a multi-year low, we can still expect price to move down to at least the green MW MA before finding support for its MM low. If the August low was not a MY low, price will surpass that target and take out the August low.