Note: My apologies for the late posting of today's commentary as I forgot to hit the "publish" button.
Price yesterday made a higher low and higher high
versus Friday's candle, closing sharply higher above all higher timeframe pivots
and MAs. Price continued on the upside of the multi-week cycle, and overcoming
resistance in the forms of the MW MA and MM MA in the process is certainly
bullish. It should be noted that on the weekly and monthly charts, price is
just meeting MM MA resistance.
A MW high is projected for today, but that does
not mean that the cycle cannot extend in time and allow price to eclipse its
September MW high. That would be about as much bullishness as one could expect out
of this cycle, for the bears should get to show what they have left in the
latter half of the week as price begins its search for the next MW
low.
The hourly chart shows price yesterday rising
throughout the day an making its 24Hr high at the close. Price overnight
drifted down slightly and appears to have found its 24Hr low on daily pivot and
24Hr MA support, behavior indicative of price being on the upside of the
multi-day cycle.
It was mentioned yesterday that we would normally
expect another daily cycle or two before seeing a MD high being made, but given
that we are in the timeframe to be seeing a MW high, it is possible that
yesterday's high could end up being the MW (and thus MD) high. Given that the
MW high is projected for today, however, and the 24Hr high is not projected
until near the close, it is even more likely that we will see another trend day
up. Should price fail to eclipse yesterday's high (or double-top) and then trade below the
daily pivot, it will signal that the MD (and very likely the MW high) has been
seen and should provide an excellent shorting opportunity into a test of the
monthly pivot/MW MA/MD MA confluence area at 1925-1927.
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