Wednesday 1/27/16

Price yesterday made a lower high and lower low versus Monday but closed higher after finding soft support on the MD MA and weekly pivot.   Price thus far today has opened above its daily pivot but below yesterday's close.

The ability of the MD MA to act as support indicates that price is finally on the upside of the multi-week cycle.  We are overdue to see the MW high, however, so it is unclear how far price can rally before the MW cycle starts to roll over again.  Price would be expected to test the MW MA before finding its MW high, but thus far it appears that this will happen due more to the MW MA's rapid decline than the ability of price to rise.  With price just coming out of a MD low, price has at least one more MD cycle upswing to make some headway.  When price breaks below MD MA support this week or next, it will indicate that the MW high has been seen.

The hourly chart shows price yesterday rising into its 24Hr high an hour before the NY close and declining into its 24Hr low in after-hours trading.  This low was made on daily pivot/24Hr MA support, classic behavior of price on the upside of the multi-day cycle.  A 24Hr high is not projected until near the close, so I expect price to rally for most of the day today.