- 1H RSI broke below 30, so we need to see it now rally above 60 to kill the bearish momentum.
- Price action held above 61.8% retracement, so it was a deep correction, but one that still keeps the bullish scenario alive.
- The 4H chart shows that the market is in medium term bearish mode because it is held below the 200SMA. However, the ability of the market to make a higher low today suggests at least a correction rally in the short-term.
- A swing projection targets a resistance zone starting with he 61.8% retracement level at 111.80 to a pivot at 112.30.
- IF the market breaks above 112.50, then we can talk about a bullish reversal in the medium-term
- 1H chart shows that the retracement didn't even get to 38.2% of the rising channel.
- It is also staying above the 200SMA in the 1H chart and maintained the RSI reading above 40. This shows that the short-term bullish momentum is intact.
- The 4H chart shows the market knowing at the 127.00 pivot. Then above 128.00, we open up the 138.80 high.
- This should also break the RSI above 60 in the 4H chart to invalidate the bearish momentum.
- On the downside, you see a lot of bullish push at the 125.30 pivot. If the market stays below 127, and breaks below 125.30, and then 125.00, we can be opening back up teh 123.30 low.
Fan Yang CMT
Chief Technical Strategist