Price:   88.75

Bias:  I'm very cautious about the downside from here - watch out for bullish reversal patterns

Daily Bullish:

Price resumed its decline on open this morning and has reached 88.23. I do see support in the 88.14-23 area - and good enough to provoke total reversal. However, if I look at the momentum position only the 8 hour, daily and weekly charts are showing potential for a bullish divergence. We must therefore be cautious and preferably wait for these to develop in the shorter time frame too. If we reach 87.10-39 consider this area also. Only an earlier break above 88.79 would provide earlier relief for 89.10 and the 89.45-50 pivot resistance - breach extends to the 89.10-50 pivotal resistance.

MT Bullish:

28th September: I feel that any time soon we shall find a major low to cause a larger reversal higher. 88.10-23 is one area to consider and then 87.10-39. Look for bullish reversal patterns.

Daily Bearish: 

There can be no argument about the downside right now except there is good support in the 88.14-23 area. Still, while longer time-frames momentum are showing bullish divergences the hourly & 4 hour are not. Thus we still need to acknowledge risk of slippage below 88.14 and if seen then we can expect extension to 87.80-88 where a pullback is possible and eventually the 87.10-39 area. At this point I feel it will hold. However, note further support levels at 86.72 and 86.24.

MT Bearish:

28th September:     Losses have been seen and have turned aggressive as we approach the major cycle low. There are three areas to look at from a reversal perspective - at this morning's 88.14-23 lows, at 87.10-39 and 86.24. Back above 91.58-62 confirms.

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.