By: Doug Rosen
After yesterdays steep move up, I do expect a retracement. On the daily chart we totally broke above the trend line. Intense moves such as the one we had yesterday are usually followed with consolidation. Briefly glancing at the weekly chart price is approaching the 38.2 fib of the last major move down and the 38.2 is nearly overlapped with a 21 ema. This 38.2 fib is at the 109.36 price level.
Moving on to the daily chart I can see that price is a way from the 5 ema and needs to let the 5 catch up so this will occur eithetr by consolidation or a slight retracement.
Moving over to the 4 hour monthly pivot chart price has bounced off the R3 at 107.81 and if price retraces say to a 50.0 fib level it should overlap with the R2 at 106.38. Stochastic is also in the overbought zone.
Moving on to the hourly weekly pivot chart price has bounced off the M4 and has fallen back to just below last week's low. So far we have made a couple lower lows so price may be heading back down and the stochastic is pointing down and the area between the 38.2 and 50.0 fib levels of yesterdays move up overlaps with the M3 as well as the 55 ema.
Finally, on the 15 minute daily pivot chart price is just below the M3 at 107.92 and the daily pivot below price is at 107.17. Stochastic is in the overbought zone and I expect price to retrace back to possibly the central pivot before continuing on up.