Richard Perry
Independent Analyst
The consolidation continues. A candle that pretty much formed a doji (open and closing prices the same) was posted yesterday to again reflect the lack of direction. Momentum indicators are beginning to settle down now as the unwinding has brought the RSI back to 30. I still do not expect this to be anything more than a near term consolidation that is sold into (remember the trend is your friend) but for the time being the consolidation continues to play out. There is little real indicators either on the hourly chart although support has been left from yesterday’s low around $1080 above the key low at $1077. The hourly RSI suggests a continuation of the rangebound conditions for now but I continue to prefer using the rallies as a chance to sell. Initial resistance is at yesterday’s high of $1094.60 with the key near term resistance in the band remaining at $1105.60. Sub $107 opens 1043 the 2010 low.
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