Price: 134.44

Bias: I feel there is early risk of a retest at 135.36-71 but then end the day lower

Daily Bullish:

While we saw gains these were very erratic and actually stronger than the conservative view I had. Indeed, this does seem to risk an earlier break higher and while 133.99 remains intact Ideally I'd like to see the upside extend above 134.74-97 and push into the 135.36-71 resistance. I feel this area will cap for larger losses. Thus any stronger bullish stance will require a break above the 136.18 resistance and if seen then we should see follow-through to 136.58-92 and probably 137.59 at least. Note next resistance at 138.32.

MT Bullish:

16th June: Yesterday's break lower appears to break the entire uptrend and thus any upside is likely to be for a correction only. Thus only above 135.70 would risk follow-through to 137.60. Then I will review.

Daily Bearish:

There is still early risk of seeing a push into the 135.36-71 area but I feel this will cap and generate losses by the end of the day. From there, or an earlier break below 133.99, I will expect the downtrend to continue. There is minor support at 133.10-50 and stronger at 133.02. Take care as this area may well hold on first test. Thus, only look for stronger follow through on a break of 133.02 and if seen will provoke additional losses to 132.34 at least. Then note support at 130.72-97 and 130.39.

MT Bearish:

19th June: It seems as if we shall see the correction recycle all the way to 135.36-71 and from there expect stronger losses back to the 132.34 low and after a correction further to 129.72-130.39 en route a retest of the 126.96 low.

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.

I shall be presenting a seminar in Hong Kong on Saturday 27th June at the Excelsior Hotel in Causeway Bay. Please see http://www.earlthorn.com/ for details.