Today's Support and Resistance levels:
R3: 141.00
R2: 140.30
R1: 139.81
Current spot: 139.28
S1: 138.91
S2: 138.17
S3: 137.58
Technical summary:
The break above 139.15 has invalidated my short-term counts and we think the best way to count the decline from 145.69 to 136.23 as a finished three wave decline and we will be looking for an x-wave. The first target for this x-wave at 139.81 has been tested and the big question is now whether we already have seen the end of the x-wave and the next decline towards 125.99 is developing. If this is the case we should see a break below support at 138.91 and more importantly below support at 138.17 which would call for a decline towards 136.23 and lower.
However, as long as support at 138.91 stays intact we could see the x-wave continue higher towards 141.00 and maybe even closer to the 61.8% corrective target at 142.06.
Trading recommendation:
Our close stop at 139.20 was hit for a small loss. We will stay neutral for now and await a more clear picture.