Price yesterday made a lower high and lower low but
slightly higher close versus Friday's candle. Price today has opened above its
daily pivot and taken out yesterday's high, behavior indicative of
price being on the upside of the multi-day cycle. It is possible that yesterday
also marked the overdue multi-week low, but until price is able to trade above
the blue MD MA and turn that average upward this will remain speculation.
If price requires one more MD cycle before finding
its MW low, price will find resistance at the MD MA and turn lower. If
yesterday was also a MW low, price should test the green MW MA before its next
MW high (projected for 1/22). It is also possible that yesterday could prove to
be a multi-month low, in which case price could move even higher before finding
its next multi-month high (also projected for the week of 1/22).
The hourly chart shows price yesterday making its
24Hr high under daily pivot resistance and then falling into an early, slightly
lower 24Hr low. Price in overnight/pre-market trading was finally able to break
through daily pivot/24Hr MA resistance, indicating that yesterday was a
multi-day low. We have since taken out yesterday's high as price searches for
its 24Hr high projected for 11:00am EST. It is likely that the next 24Hr high will
also be the overdue MD high, and the blue MD MA or weekly pivot would be a
logical place for this high to be made. If yesterday was also a MW low, it is
possible that both the 24Hr high and MD high will extend in time and we could
see price rally throughout the day. For scalpers or day traders, any dips down to the brown Session MA
should be bought until price reaches the MD MA, then more caution will be needed
as we see how price interacts with that resistance. For swing traders, one should be long until price visits the MW MA.
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