Bias: While price remains above 135.91-136.20 I feel there is still room for gains to 137.97-138.16
The triangle finally broke higher to reach the minimum target at 136.83 but I feel there is one more leg higher left in this… The immediate problem is whether the 136.20 formed the corrective low or whether we can see 135.91-07 first. The break level is around 136.25-30 so if this breaks then the 135.91-20 area should be considered for a reversal higher. If the 136.25-30 are supports then we are more likely to see a sideways trading range develop - probably a triangle like structure. From here a break above 136.84-96 would extend the rally towards 137.27-53 at least and my favored target is at 137.97-138.16 where I see a cap and reversal lower. If I'm wrong then the next resistance is at the 139.21 high.
22nd October: With the 136.83-137.10 minimum target reached we have to take care but I feel the hourly momentum implies we'll see the higher target area at 137.97-138.16. I feel that should just about exhaust the rally...
There is a strong bearish divergence in the 4-hour chart while the hourly is a bit mixed. I therefore focus on the 137.97-16 area as the likely stalling point. As long as the 4-hour divergence remains intact and is joined by the hourly this should provide a good selling area. Before that the critical support is at 135.91-136.20. Only a direct breach would imply extension of losses down to 135.39-56 at least, more likely to the 135.18 corrective low and maybe even the 134.75-85 swing lows.
20th October: We can raise the reversal level to 134.50-75 now… and potentially look out for an eventual selling opportunity around 136.83-137.10 or at 137.56-96.
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.