Price: 96.52

Bias: Watch support at 95.72-94 - only below resumes losses else see a move to new highs

Daily Bullish:
The strange price development soon after the 93.84 low indeed produced a strong rally yesterday and puts my structure in doubt and therefore I feel we need be cautious. For the moment I can't see any strong argument for a significant reversal and see support at 95.94 (max 95.72) that I feel will hold. A bounce from this area should then move back higher to 96.55 and then 97.00 again where a small pullback is possible but overall I feel we should see a break above 97.23 for 97.56 minimum and probably 98.00-34. Next at 98.97.

MT Bullish:
29th May: The break above 97.14 has been marginal but I sense we're going to see this reach 97.56-64 at least and potentially as high as 98.34 - and even 98.97. Only a break above 99.74 is going to indicate a much stronger bullish picture.

Daily Bearish:
For now I feel we can see the 96.60-63 area cap for losses to 95.94 and at most 95.72. Take care around this support area. It is here that a break would bring us back onto a bearish track. There is then close support at 95.45-50 which may well provide a small reaction but once broken would extend losses through 95.13 and 94.64.

MT Bearish:
29th May: The break of 97.14 has only been marginal but the manner of the rally does suggest that we're going to have to wait for the next leg lower. I feel either 98.34 or 98.97 will cap. Back below 95.45-72 would raise the chances of direct 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.

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