“Our daily charts portend positive momentum signals and sub-cycle of the main cycle shown on the chart coming into play. Indeed, the high of the cycle coincided with the price trough, telling us the sub-cycle is in force, which implies more recovery is likely. Also both MACD and slow stochastic oscillators are now positive after forming bullish crossovers and positive divergence with the price action.” Bondar notes.
As such, the 141.10/25 resistance region is quite an important resistance formed by the 50% Fibonacci retracement from the Jun-Jul impulse wave and 100-DMA. “However, on the long-term horizon, the outlook is less clear, as despite the positive signals discussed above, the long-term charts remain bearish, as a large H&S on a continuation chart might become the dominant theme.” he warns.