Buyers held support and the market rallied to target hitting 895.10 this morning. Buyers have covered at these higher levels. Now there is double top on the hourly charts and this morning failure to break the 896 region will result in sellers pushing this lower.
879/878.45 would be the likely target, and buyers will jump in at this point to strategically defend this market. Buyers would only panic if the market broke 871. You would then see sellers forcing this lower with 864 then targeted.
896 breaking negates topping pattern and leads this higher for 899/900.64. Buyers will be profit taking to here. Now this level is the 25% first fib retracement target from the move from 1006.25 to 864, thus offers excellent resistance. Sellers will abound at around here,. However, buyers are persistent and over 903 sellers will be forced to re-think, whilst buyers take this higher for 909.85.
Oil June Contract
HAVE CHANGED TO JUNE OIL...
Oil is currently trading above its 25% short term fib level of 4834. making a base on the short term charts. Now this needs to break 49.29 to complete the base pattern allowing buyers to stretch to their full potential of 51.58/69. Obviously there are other levels of resistance along the way, but it should just be a case of backing and filling still retaining underlying strength. Now if 49.19/29 continues to cap sellers will be looking to break the base formation which would include breaking 48.34 and also 47.70. buyers would find a break of 47.70 unpleasent as this would suggest further weakness leading to 46.72 initially.
The other important thing to note is that on the pullback to 46.72 Oil actually achieved the longer term 61.8 fib level of 46.74
USD/JPY failed to maintain gains and fell back lower to 97.57. Now this morning you have seen the market come higher just breaking the fib level of 98.38 for 98.44. There is still some underlying strength within this market and as long as 98.08 captures the lows buyers will stick to their guns and try their hardest to push this higher.
98.90/94 is the level that is looking to entice. Buyers will be taking profits at these higher levels and sellers will be hovering about looking to get in quick and lead this lower once more to 98.38.
However if enthusiastic buyers can break and hold above 99.20 buyers will see 99.76 as their short term target. Above keeps the buyers interest and provokes a move higher with 100.43 then the short term objective.