General overview for 08/02/2016:
The price action still looks bullish as the market consolidates around the weekly pivot at the level of 130.66. The three-wave corrective structure in wave -ii- looks completed and as long as the level of 130.03 provides support, the outlook is still bullish. However, if the intraday support is clearly violated, then the corrective structure might get more complex and time-consuming. Moreover, in larger time frames the trend is still bullish as long as the level of 126.08 is not violated.
Support/Resistance:
132.66 - WR2
132.32 - Local High
131.32 - WR1
130.66 - Weekly Pivot
130.03 - Intraday Support
129.34 - WS1
128.76 - WS2
127.29 - WS3
Trading recommendations:
We still expect the market to go upwards as the impulsive structure does not looks completed and the important bottom seems to be in place as well. This is why day traders should open buy orders as long as the level of 130.00 is not violated (SL below 130.00, TP open for now).
