Price yesterday had an inside day, finding support
for its higher low on the weekly pivot and resistance for its lower high on the
MD MA. Price early in today's candle has opened above its daily pivot and
exploded higher, taking out last Friday's high, meaning that price is still on
the upside of the multi-week cycle. It is looking extremely likely now that the
small two-day pullback in mid-February was a MW and low, and the next MW high is
not projected until next Tuesday. Price is currently ignoring the potential
resistance on the weekly and monthly chart from the MY MA, but that does not
mean that the will be the case by week's end. While this does mean that the
upside reward over the next two weeks is far less than the downside risk, the
strength of this rally has been very impressive, giving a hint that price is on
the upside of the multi-year cycle.
The hourly chart has become somewhat difficult to
interpret as price has chopped above and below the Session MA, the 24Hr MA and
daily pivot, and even the MD MA, all areas that normally provide visible support and
resistance during the daily, MD and MW cycles. What is evident is
that price just one bar ago surged higher and took out Friday's MD high,
signifying that price is still searching for its MW high.
Unless price saw an overnight high and low, we are
in the timeframe to see a 24Hr high. We are also in the timeframe to see a MD
high. There is the possibility that the next MD high will also be a MW high,
but the sloppiness and choppiness of the hourly chart has made it difficult to
make any of the normal proclamations that a certain action will mean that a
24Hr, MD or MW high has been seen. It should be noted though that such
choppiness usually occurs as a cycle is changing from up to down (or vice
versa).
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