DailyBars
Prepared by Jamie Saettele, CMT
Yesterday’s sharp reversal formed the first bullish daily key reversal since 10/4/11. Although disconcerting for short term bears, a test of 12880-12900 remains favored as long as price is below the April high of 13379. 12880-12900 intersects channel support late this week. Watch the level closely as a drop below the channel would be a ‘tell’ that the decline from 13379 is a 3rd wave rather than a C wave. On the other hand, a rebound from that level (or spike below and recovery) would favor the C wave interpretation. 13210/50 remains resistance and 13090 is short term support.
Bottom Line (next 5 days): lower
