This is the update to my last post, of Aug. 14th.

In my last post, I said it was critical to watch how price behaves in the coming week w.r.t. the S1 level.  Now, on this new chart posted here, we see  that three times last week price penetrated S1, and on Friday the entire day was below S1.  And between those two times, price went up to S3 and turned down from it, S3 now acting as resistance.  So, we have price breaking support while holding resistance, the classic Midas definition of a downtrend.

In my last post I identified two timeframes within this one daily bars chart, the several weeks long one and the several months one.  The breaks below S1 last week show that we’re still in a downtrend on the several weeks’ timeframe, and in just a consolidation on the few months’ long one.

On Friday, price went down to, and bounced up from, the weekly support level marked there.  So, this is what we need to watch in the coming week.  If price lifts off this support, then a new, intermediate term (weekly bars chart) uptrend may be starting.  But, if price goes below those weekly support levels, then we’re simply in a downtrend on that intermediate term timeframe.

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