Richard Perry
Independent Analyst
The medium term outlook continues to look for a decisive pattern as the momentum indicators have gradually become increasingly neutral. With the recent support band building around 116, the rebound seems to have failed to push back above the resistance band 119/120 as the wind has been taken out of the recovery overnight. The intraday hourly chart shows us more of the current outlook as the rally on Tuesday managed to break the recent two week downtrend and also complete a small base pattern above 118. However the overnight correction has now questioned the base formation and if the support between 117.50/117.75 fails to hold then the recovery will be in jeopardy. A loss of support at 117 would re-open a test of 116.
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