Thursday 1/7/16

The daily chart shows price yesterday making a lower high, lower low and lower close versus Tuesday, as price continues on the downside of the multi-week and multi-month cycles.  The multi-week low is projected for today, and while the global sell-off has all the makings of a climactic washout, we must remember not to trade based on projections, but upon price.  Price will find its MW low, likely this week, then rally above the blue MD MA, eventually turning that average upward to confirm that the MW low is behind us.  How sharply price rallies into its next MW high due at the end of January will help us shed light on where we are in the multi-year and multi-month cycles.

The hourly chart shows price making its 24Hr low yesterday just before the NY open then finding resistance at the 24Hr MA several hours later for its 24Hr high.   Price plunged lower in overnight trading as we continue on the downside of the MD, MW and MM cycles.  Price is currently trading above the gold Session MA, indicating that the 24Hr low has possibly already been seen.   A Session low will be due near the NY open (also the projected time for the 24Hr low), and a higher Session low would confirm that the 24Hr low has been seen.    It is likely that either today's 24Hr low or the next will be the MD low, and it is also likely that the next MD low will be the MW low.