Price: 147.59

Bias: While 147.96-05 caps I look for losses to extend to 145.69-99

Daily Bullish:
We have already seen losses to 147.02 since I started this report. This does look enough for now and should allow a correction back to the 147.96-05 area. However, this should cap for more losses. There is also resistance at 148.26 and only a break back above this resistance would turn back the direction to positive for a retest of the 148.90 pivot resistance and if this breaks then to yesterday's 149.84 high. I feel this should hold on a second attempt. Only breach extends the gains to 150.60-80 and above there is the 151.52 high.

MT Bullish:
4th May: The correction came as expected expect it has been much deeper than expected. However, I feel we are close to the end of this with the 149.00-57 area providing resistance. Thus only above would take us back to the area close to the 151.52 high but I suspect this should hold initially for a correction.

Daily Bearish:
A cap was seen at 145.84 yesterday and this morning has generated the losses I have been looking for,. These have reached 147.02 so far and while any correction remains below 147.96-05 (max 148.26) I will look for the losses to resume back to 147.02 and while this may cause a brief pullback I suspect that the greater risk is for losses to 146.50 and more likely the 145.69-99 support area where I suspect we shall see a further correction higher. Only below sees follow-through to the next support at 145.05 and 144.50.

MT Bearish:
4th May: As we approach key resistance areas at 149.00-57 with bearish divergences developing a bearish reversal pattern in this area would suggest an initial drop back close to 145.40-70 and following a correction potentially all the way back to the 139.00 low a reversal to 129.74 is likely and while it may cause a brief correction I feel that we may well see a total reversal.

I shall be presenting a seminar in Hong Kong on Saturday 27th June at the Excelsior Hotel in Causeway Bay. Please see http://www.earlthorn.com/ for details.

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.