The early day price action suggests some sideways trade is developing in front of the 1129.50 high. Support resistance resides at the 1122.25 high through to the 1129.50 high on the weekly/daily chart. Support resides at 1112/10 which we want to ideally hold to retain the bulls strength in this up move. A close above 1124 remains key to testing the 1129.50 highs of this big congestion zone (50% retracement of the 1211.50 high to the 1002.75 low of the last three months and the 61.8% retracement level). But closing above 1134 would be a very bullish signal to extend into the 1150 area and potentially the 1175/95 area over the longer term.
A defensive close below 1110 would hint of a more sideways trade that could test the 1100 area and potentially the important support at the 1090/85 old resistance/weekly down trendline. An unanticipated close below 1100 would hint of a lower high and revert the focus back to the 1083 low. Breaking that key support would warn of a lower high to extend down into the 1074/68 support. But closing below 1060 will confirm a top to push into the 1051 through 1035 area and give the bears control of this market again.
Strategy– Long at 1086/84, stop 1100, target 1124/28. Longs at 1112 exit on this position at 1124. Short term trade- go long 1114 stop 1110 target 1124 also.
