Bias: Mixed - waiting for breaks
[There seems to be a mildly positive potential today with the 78.49-68 area likely to cap… otherwise yesterday’s comments continue to apply] Friday's gains stalled at 78.12 and this can be considered the lowest area to confirm a reversal higher. I'd still be a bit cautious until the 78.68 area is also broken. Until then there remains risk of sideways consolidation at least and I still can't rule out a break below 76.23....
8th February: With the lower target met I feel we should be watching for bullish opportunities. A break above 78.45-68 will held and then above 79.30-60 would provide a stronger signal.
If the current rally follows-through above the 77.82 high we should find a temporary peak around 78.02-12 and then later follow-through to 78.49 (max 78.68) and in this area I feel we should be looking for a bearish trade set up for a correction lower. Only an earlier break below the 77.30-35 area would undermine this bullish potential and cause follow-through back below 77.02 and yesterday's low at 76.79 at least. I suspect then we could see a retest closer to the 76.23 low (no lower than 76.04.
9th February: The break below 79.26 extend losses directly and aggressively. However, I feel the move has probably ended. Therefore only below 76.04-23 will be bearish for 74.90-12 and 74.48.
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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 available on the Daily Forecast page of my web site in the Trader Package review.