As mentioned yesterday, there is increased probability that prices will move towards 1260$ again and maybe higher towards 1290$. The upward move from 1226 is impulsive and the decline from 1258 to 1233 is corrective. We have a move of 5 waves up and 3 waves down. Thus we should at least expect another 5 waves up that will most probably push prices towards 1260 and maybe higher.
Prices have broken out of the downward sloping red trend line resistance and will be testing the neckline resistance level again at 1260$. Prices are trying to form a new bullish pattern from 1333 with smaller degree higher highs and higher lows at 1239$. We believe this is the start of a new upward move that will break above previous high at 1258$.
Support is found at 1239 and resistance is at 1260$. Prices tend to move upwards with 1260-90 as possible target. As shown in the chart above, prices have broken out of the downward sloping channel and we should see an upward bounce. This could push prices towards 1300$ before continuing with its larger head and shoulders pattern that could take prices to 1140$. So for now as long as we trade above 1240 we remain short term bullish.
