Price yesterday made a lower high, lower low and
lower close versus Wednesday as we continued on the downside of the multi-week
cycle. Price thus far today has opened above its daily pivot and eclipsed
yesterday's high. This is behavior indicative of being on the upside of the
multi-day cycle, but it remains to be seen whether yesterday's low marked the MW
low and price is now on the upside of the MW cycle. If so, price will be able
to trade above MD MA resistance and turn that average higher as price searches
for its MW high projected for 2/23. If we need another MD cycle before the MW
low is seen, then price will find resistance here at the MD MA and take out
yesterday's low within the next few days.
The hourly chart shows price falling sharply in
pre-market trading yesterday and making its 24Hr low before the NY open. Price
whipsawed violently throughout the day, but was finally able to trade above the
24Hr MA in afterhours trading. Price found frequent support at the daily pivot
in overnight trading, indicating that yesterday was a multi-day low.
We are overdue for price to see a 24Hr high- in
fact we are in the timeframe for the 24Hr low to be seen. It is possible that a
24Hr high and low were seen in overnight trading (note the brief downturn in the
Session MA), in which case price would be expected to rise throughout the day,
but I will work on the assumption that price will make its overdue 24Hr high at
MD MA resistance and fall into a late morning 24Hr low before rallying into the
close. Support for this low should be found at the 24Hr MA or daily
pivot. Failure to find support at these levels will indicate that price is likely still on the downside of the MW cycle and lower lows would be expected by Monday.
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