Today's support and resistance levels:
S1: 125.35 R1: 126.03
S2: 124.79 R2: 126.57
S3: 124.19 R3: 126.94
Technical overview:
With the break above our invalidation point at 125.89, we have to conclude that wave 4 did indeed terminated at 118.73, short of the ideal target at 117.28. So, our focus will again be on the upside as wave 5 develops. The first target for wave 5 is at 131.39, where wave 5 will have travelled 38.2% of the distance from the bottom of wave 1 to the top of wave 3. That said, we do think that 50% or even 61.8% targets at 135.36 and 139.32 will more likely be seen. In the short term, we should be looking for wave ii of 5, which should be our entry for the next powerful rally higher. Before we see wave ii of 5 begins, we may see one last minor rally higher towards 126.75, from where wave ii down to at least 123.80 should be expected.
Trading recommendation:
Our stop at 125.95 was hit and we will now be looking for a buy opportunity when wave ii of 5 develops.
