Another strong up move finally allowed for a close above the 1085 resistance/weekly down trendline. Further strength today would add to the scenario that a low was forming to move into the next weekly resistance at 1098/1102 area. The key for today’s trade is to retain the close above 1085 (or better) and test the 1100 area. A more difficult close above 1102 would add to the idea that a low had formed to extend the focus to the 1130 aresa.
On another note the daily oscillators are at a critical area that is defining this recovery strength, i.e. overtaking the 0 area on the macd and two other proprietary oscillators would be a bullish sign if this upside strength can develop. A big ‘if’ in trading terminology but could change the technical picture of the daily chart for us.
Likewise, a close back below 1080 would negate this developing upside scenario to retain the overall wide trading range. Support resides at 1084/80 and then 1074/68 which we would this should ideally hold if the bulls are going to have any chance of moving higher. But closing below 1060 will again open the downside into the 1051 through 1035 area and give the bears control of this market. Breaking that zone would offer the weekly support at 1006/996 area which includes the 38.2% retracement of the 2009/2010 bull move.
Strategy- long on the close at 1087, stop 1080, target 1100 zone where we would take profit.