Bias: While 148.70-87 supports I look for a deeper correction higher
Well… that was a total reversal and from below my target. However, I think we're close to the end of the first leg lower and I feel this will stall in the 148.70-87 area. Look for a bullish reversal pattern here. Once it starts on its way the first area that could generate a correction is at 150.25-35. Thus take care. Only a break through this resistance would maintain the bullish momentum for 150.60-87 and probably above 151.04 towards 151.77 approx. Around here I feel there is risk of a cap. At most 152.20.
26th October: The rally appears complete and I do not foresee new highs at this point. However, the 148.70-87 area should provide a decent pullback.
The size of the decline doesn't really surprise although I thought it would come from a high point. I don't think there's much more in this decline either - at most 148.70-87. Thus, to see any additional losses we'll need breach of both 148.70 and also a lower projection at 148.39. If seen then look for losses to extend further to 147.50-62 at least. Take care there. Next support is at the 147.07 low followed by 146.46.
26th October: The rally appears to have found its high - lower than expected - but the decline should have ended the rally and we should therefore be looking for potential selling areas. I feel this may come somewhere between 151.04 and 151.77.
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