Bias: The Care at 77.48-73 as I feel this could stall the immediate downside
The 79.27-42 resistance capped perfectly and has provoked a stronger push lower. There is support at 44.48-73 and watch this area closely for a bullish reversal pattern. If this develops trade the break as this would tend to support the triangle I have been following. A move back above 78.45 should then generate additional gains through to between 78.82 to 79.04. I feel that should be as high as we can expect. Only break there would maintain the bullish momentum for 79.42.
31st August: We still remain within the 77.48 to 78.82-04 triangle and until this high breaks the main direction remains lower..
The move down from 79.42 has been steady and should find a low in the 77.48-73 area. Thus, while the larger trend is lower, there is risk of one last bounce from this support. Only a breach of 77.40-45 would generage immediate losses below 77.04 and to the 76.70 low. This may cause a small pullback but overall the main direction is lower and should then extend to 76.51 and possibly 76.02.
31st August: As long as the 77.48-73 area supports we should be presented with a better selling area around the 78.82-79.04 area. From there I anticipate a break below 77.48 and then below 76.70 for more extended losses.
For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are now available on the Daily Forecast page of my web site.