Price yesterday made a higher low, higher high and
higher close versus Monday's candle, closing above the MD MA. Price today has
opened above its daily pivot, eclipsed yesterday's high and is currently trading
above the MW MA. Price is still on the upside of the multi-day cycle, but it is
still unclear whether we are on the upside or downside of the multi-week cycle.
Though certainly not timely, we may not know the answer to that question until
price breaks below last week's low or above last week's high.
The hourly chart shows price yesterday finding
support on the daily pivot and 24Hr MA then moving higher into the close before
finding resistance at the MW MA. We traded sideways overnight, bouncing along
the Session MA before breaking above the MW MA several hours ago.
It is unclear whether yesterday's 24Hr high
occurred in pre-market trading or just after the close. In the former case,
price traded below the Session MA and turned that average lower indicating that
price was on the downside of the daily cycle. There was no lower Session high
during this period, however, which is another hallmark of being on the downside
of the daily cycle. In the latter case, price did see a lower Session high in
overnight trading, but price continued to find support on the Session MA. This
makes the timing of the next 24Hr high uncertain; we could be overdue for the high
to be seen or it may not be due until the close. More importantly, the next
24Hr high is likely to be a multi-day high, so when price breaks below the gold
Session MA, I would expect price to show a steeper decline into its 24Hr low
than the modest pullbacks seen thus far this week.
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