| Resistance: | 118.80 | 119.97 | 120.63 | 121.06 |
| Support: | 118.10 | 117.40-50 | 116.95 | 116.45 |
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Bias: While 118.10 supports the bullish structure looks the stronger…
Daily Bullish
The break above 118.00-20 provided stronger gains than expected and these do look constructive. However, it will require the 118.00-10 area to remaining supporting and we have seen this test already this morning. A move back above 118.80 will assist and generate follow-through to the 119.97 high and probably 119.97 en route 120.63 at least. Take a little care here but I feel it should break for gains to head back to 121.06 minimum. Then note next resistance at 122.15-20 followed by 122.89-123.30.
Medium Term Bullish
6th February: The failure at 118.90 and the depth of the drop argues a more consolidation pattern. Thus only a break above 118.90 would alter this and cause a test of 120.63-121.06 at least.
Daily Bearish
Unless the 118.00 support breaks the structure remains bullish. Thus observe the current decline and only if we see breach of 118.00 should you look for losses through 117.40-50 towards 116.95 at least. Next support is seen at 116.40-50 and 115.70-80. Much below this would cause problems and a stronger follow-through required for 114.20 and 113.02.
Medium Term Bearish
6th February: The peak at 118.90 appears to be part of a larger triangle structure which should find a base above the 113.96 level. This will return price back higher into the range but the next larger move should then be lower to retest the 112.07 low...
