Today's support and resistance levels:
S1: 118.35 R1: 118.90
S2: 117.90 R2: 119.40
S3: 117.52 R3: 119.84
Technical overview:
The rising channel is still intact, which means we still have two possible options at this point. First, a more complex wave IV correction is ongoing from 120.12 and will be resolved on final rally higher towards the ideal target at 121.28. Second, we could already have seen the wave 3 end at 120.71 (just below the ideal target at 121.28) and the wave 4 is ongoing. This wave 4 will likely take us down to 113.54, which marks the bottom of wave IV of one lessor degree. At this stage it is impossible to say which option is the correct one. However, we have to remember that we are in the final parts of the wave 3 and even if we see one more rally higher towards 121.28. we are pretty close to a top. In the short-term, we expect support at 118.35 to protect the downside for a test of the 119.40 - 119.50 area, before some real downside pressure takes over again.
Trading recommendation:
We will stay neutral and wait for better trading opportunities.
