Price: 76.74
Bias: There should be a pullback higher today
The underlying MT direction is neutral while the daily bias is bullish. Caution is advised but there is a mild preference for gains within a consolidation. However, be aware of the risk of choppy price action that could hit stops. Therefore take note of both daily & MT S&R and confirm any bullish trade with bullish set up patterns. It would also be advisable to study both lower and higher time frame charts for evidence to support bullish trades.
Consider buy set ups at: 76.60-65 (care)
Consider sell set ups at: 77.30-45 or 76.50
| Resistance | 76.83-88 | 77.15 | 77.32-44 | 77.60-70 | 77.90-00 | 78.28 |
| Support | 76.60-62 | 76.30-40 | 75.97-14 | 75.57 | 75.27 | 74.64 |
Daily outlook
Losses stalled above the 76.57 low as expected and should now provide a correction higher. Initial resistance is at 76.83-88 but should later give way for extension through 77.15 at least and then the 77.32-44 area. We should consider this as a potential cap for additional losses - if they are to develop. Any break above 77.44 would not break the bearish move but would lower the odds. Then note the 77.60-70 pivot resistance. Above there would strengthen the potential for a retest abpve 77.90-00 and then the 78.28 high...
On the assumption that there is a downtrend then I'd expect 77.32-44 to ideally hold. Any earlier break below 76.57 would also do the trick and extend losses to the 76.30-40 area (if direct.) Below there is the 75.97-14 projection/support and then the 75.57 low.
Medium Term Outlook
3rd January: The break below 77.61 has put the cat amongst the pigeons but I don't want to get too bearish until the 76.57 low breaks. It's below there that could extend losses to 75.97-14 at least - and any lower would break the 75.57 low and probably extend losses to 75.27 and 74.64 en route the 72.50-73.50 area. Back above 78.28 will resurrect the more direct bullish outlook for 79.53 and much, much higher.
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