In yesterday's analysis we noted that the bigger degree upward corrective move started. Prices opened with a gap up around the $1,225 price level. We mentioned yesterday that long positions should only be considered if the gap was closed. We were expecting a pull back down and then another move upwards. Prices moved exactly as expected. The gap was filled and prices are now making new higher highs as the short term trend changed up after breaking upwards the downward sloping trend channel.
The first short term target is $1,250 where the 38% Fibonacci retracement of the decline from $1,270 to $1,180. Prices are expected to continue their upward bounce. This upward move is part of a corrective pattern upwards.
The daily chart continues to support our longer term bearish view. Trend remains down as prices remain below the purple downward sloping resistance trendline. The slope of our MA is still negative and the pattern of lower lows and lower highs continues to apply. Concluding, we will look for selling opportunities near $1,270.
