Bias: While 124.00-40 supports gains can move thru 126.07 for 127.25 else breach threatens larger losses
The break back through 123.52 did generate follow through to just below the 125.76-126.06 resistance from where we have seen a pullback. While this remains above 124.00-40 there can still be an argument for gains to maintain the upward progress for a break above 125.35 and then the 125.64 higher to retest and probably break the 126.07 high to reach 126.45 minimum and probably 127.25. I'd expect a correction from here.
4th March: Now we have seen a recovery from the 121.73 low we can develop projections for gains. These will require a push above 126.07 and if seen should eventually provoke a move as high as 128.18 and probably the 128.70-90 area.
The rally has been encouraging with one exception - a bearish divergence has developed in the hourly chart. However, before getting bearish we shall need a break below 127.00-40 to confirm larger losses. If seen then expect follow-through below 123.65 & 123.20 en route the 122.36-60 area at least. Take care here in case a larger sideways consolidation develops. Below 122.36 would threaten the 121.71 low and possibly the end of the move higher and thus losses should be persistent.
5th March: No real change here but we can raise the reversal level to 124.00 and below here risks follow-through to the 121.71 low and possibly further in a larger decline.
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