The daily chart shows price yesterday making a
higher low and higher high but closing very slightly lower than Wednesday's
candle. Price today has opened below its daily pivot but is currently trading
modestly higher. We are definitely on the upside of the multi-week cycle, and
the longer we remain above the MW MA the more likely it is that we are
also on the upside of the multi-month cycle. A MW high is projected for next
Wednesday, and a MM high is not due until late January/early
February.
In yesterday's hourly chart commentary it was
posited that the 24Hr high had likely been seen several bars earlier and that
price should then drop to at least the 24Hr MA and possibly the daily pivot in
search of its 24Hr low. Price indeed had seen its 24Hr high and dropped just
below the 24Hr MA for its 24Hr low at noon. We have traded mostly sideways since that
low, but price has recently been able to break above the daily pivot.
We are in the timeframe to see a 24Hr high. A
lower high than yesterday's will mean that yesterday was a multi-day high, and I
would then expect price to break below yesterday's 24Hr low and test at least
the green MW MA and possibly the blue MD MA in search of the next MD low. Should today's 24Hr high eclipse yesterday's high, it will be likely that today
will be the MD high, and we would then still see a pullback to the MW or MD MA
by Monday before rallying into the projected MW high.
No comments:
Post a Comment