The daily chart shows price yesterday making a
lower high and lower low, closing just below the MM MA and monthly pivot. Price
today has opened below its daily pivot and has thus far shown little movement
from yesterday's close. Yesterday was the projected date for the multi-week
low, but while price has not yet taken out last Thursday's low it also continues
to ride MD MA resistance lower - evidence of still being on the downside of the
MW cycle.
Frequent readers of this blog will know that
Wednesdays are rarely the high or low of the week, except when they mark a MW
high or low. Last Wednesday marked the MW high, and it remains to be seen
whether today will mark the MW low, last Thursday was the MW low, or if the low will stretch into late this week or next. Price
closing above the MD MA will be the first clue that the MW low is behind us; the
MD MA turning upward will be confirmation.
The hourly chart shows price yesterday making a
late morning 24Hr low but the white 24Hr MA continued to cap any attempts to
move up. Price appears to have made a last-gasp attempt to break 24Hr MA and
daily pivot resistance in overnight trading, which likely marked the
24Hr high. We have since traded lower in search of the 24Hr low which is
projected for noon.
We are in the timeframe to see both a MW and MD
low, so it is very possible that we could see a strong rally once today's 24Hr
low is seen. A break above the daily pivot near 2064 should result in at least
a 10 point rally to the MD MA and potentially much higher over the next few
days. Until 24Hr MA/daily pivot resistance is broken, however, we must assume
that price continues on the downside of both the MD and MW cycles.
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