The daily chart isn't giving us a whole lot of new information at this time as price movement has been muted overnight. We are continuing to see price and indicators play out as suggested that they might yesterday in following the pattern that played out in February. RSI is currently sitting at 33.79, right above oversold. MACD is printing a contracting negative histogram, but a drop in price today would obviously change that to expanding. This would play out exactly as it did on February 3rd. However, none of this is guaranteed to happen as suggested. It is one of many possibilities, but at this time seems the most probable. Any strong bullish momentum today would potentially invalidate this. This is Friday, though, and the weekend is fast upon us. As always, with the weekend comes reduced liquidity and easier price movement with less capital. For Market Makers (MM) looking to create the Wyckoff spring, it is the optimal time to do so. They would have much less resistance and the ensuing panic would fill their longs and send price rebounding strongly up and out. It is also the optimal time to send price up from its current position via the IHS pattern mentioned above. Traders should always be cautious in moments like these where there are multiple competing strong candidates for price movement and no clear path. It is always best to wait for confirmation before entering a trade.
