Bias: Mixed - waiting for breaks
The depth of the pullback is suggesting that the uptrend may well be complete€¦ While this does seem to imply more losses I'm not convinced these will be aggressive as yet. Watch the support between 129.85 and 130.92 which is in the span of the previous sideways consolidation. I suspect that any losses will hold above here. To get the upside looking stronger we're going to need a break back above 133.32 and more importantly the 134.00 high. If seen then a deeper upmove is possible. Resistance then at 135.42-67 and 136.20.
8th April: I am getting more and more concerned here but do feel that we should get a correction higher from the 129.80-130.90 area at least. From here or a direct break above 134.00 there is potential for 135.50 & 136.20 but I'll review if seen.
Losses have been much stronger than anticipated and this is threatening a complete reversal of the uptrend. I can see potential for losses below 131.90 to extend below 131.50 and to the 130.80-90 area. Take care here as it could hold. However, also note support at 129.85. Only a breach of this lower support would provoke stronger losses to 128.58 at least.
7th April: The 134.00 level broke but apart from the daily bearish divergence I can't see any bearish signal. Thus until the 133.15 corrective low breaks I'll hold back. Loss would then extend the decline to 131.50 at least and probably the 130.80-90 area - max 129.85.
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.