Tuesday 1/26/16

Price yesterday made a higher high and high low than Friday' candle, but closed below Friday's low and its own daily pivot.  Price thus far today has opened below its daily pivot and made a lower low, behavior indicative of being on the downside of the multi-day cycle.  We are also in the timeframe to see a multi-week high, but thus far price appears to have found soft support on the MD MA and weekly pivot.  Price would be expected to test the green MW MA before the MW high is seen, and if today is merely a MD low, price will have the next several days to make this test; failure to do so would be an indication of extreme weakness and lower lows ahead.

The hourly chart shows price yesterday being unable to eclipse the MW MA but finding support on the daily pivot for most of the day until breaking support late afternoon and dropping down to the MD MA and weekly pivot.  That support also broke in overnight trading but price then found its 24Hr low and has since rallied above the MD MA and weekly pivot.  We are in the timeframe to see a 24Hr high, and the daily pivot would be a logical place to find resistance for this high, especially if we are still on the downside of the MD cycle.

A 24Hr low is not projected until well after the close.  If we are still on the downside of the MD cycle, this means we should see a steady decline as soon as the 24Hr high is seen.  Failure to do so would indicate that the overnight 24Hr low was also a MD low, and price should be able to eclipse the Sunday evening highs in the next day or two.