The daily chart shows price yesterday gapping up
and closing just above the MW MA. Price thus far today has made a lower low
than yesterday and is currently trading right at the MW MA.
With a MW low having been seen Thursday and a MW
high not due until next Tuesday, price should find support for any pullbacks on
the MD MA as it works higher into its MW high. If price is still on the
downside of the multi-month cycle, however, the MW MA would be a standard place
for price to find resistance for the MW high, and it could even force that high
to be seen early. If price closes below the MD MA in the next day or two, we
will know that price has seen an early MW high and is still on the downside of
the MM cycle. If price is able to trade firmly above the MW MA and turn that
average higher, we will know that last week was a MM low as well and it will give hope
to bulls that this rally has much further to go.
The hourly chart shows price in yesterday's
shortened holiday trading making a 24Hr high just above the MW MA and a shallow
24Hr low just two bars later on MW MA support. We then saw a half-span 24Hr
high in overnight trading which likely signals a multi-day high, and price has since
been falling in pre-market trading as it searches for its next 24Hr low.
The 24Hr low is projected for just before today's close. It is likely that the next 24Hr low (or the one after) will also be a MD
low. As mentioned above, if we are still on the upside of the MW cycle, the
blue MD MA should provide support for the MD low and price will attempt to take
out the recent high in the next week. Should the green MW MA provide support
for the MD low (something I consider fairly unlikely), it would be a very good
sign of strength and indicate that last week's low was also a MM
low.
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