Bias: Mixed - waiting for breaks but with a slight bullish preference
Well, we did see the correction extend higher but without a bearish divergence I cannot say for certain that it is complete. As such, while the 137.47-137.88 area supports there may be room for another push higher. A break above 139.00-20 would provide the impetus for additional gains above 139.50 and then yesterday's 140.00 high. The eventual peak is a little hard to identify. We should watch the 140.50-75 area as it could hold here. However, there is a potential indication of a move as high as 141.50-77 again.
16th March: The correction from the 131.46 low has been much deeper than expected€¦ It may even reach 140.50-75 but only above here would threaten a retest of the 141.49-77 highs...
We saw a reaction lower from 140.00 but it hasn't been strong as yet and without a bearish divergence in either hourly or 4-hour charts there isn't yet any confirmation of losses. If we see another push higher later today watch around the 140.50-75 area and if this breaks anywhere above here up to the 141.50-77 peaks look for a bearish divergence to develop and for a bearish reversal pattern. Only an earlier push below 137.47 and 136.90 would raise the chance that we're on our way lower directly. Support is at 136.10 and breach will maintain losses for 135.60 and probably the 134.30-72 area...
17th March: We only saw 140.00 but there has been no reversal signal yet. Watch for a peak to develop anywhere between 140.50-75 and 141.50-77 with a bearish divergence and reversal pattern that should signal quite firm losses.
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.