The rally petered out at 137.12 and down we came, breaking through all barriers until reaching 135.30. We have closed at the lows as well...therefore this morning if we open below 135.30 we should see the market carry on lower with 134.80 then 134.53/50 the targeted area.
Here we will look to cover all short positions as the decline would have been quite steep then and will put us into dangerously oversold territory.
Now if we hold 135.30 on the open we have scope to trade higher and we look for a return towards 136.05. Here we cover all longs. We would expect this resistance to hold therefore we enter shorts, keeping stops above 136.21
Bobl:
Bobl made a Double Top on the continuation charts on Friday, and now we should see this pay out to the downside.. We have excellent support at 123.34 and a break of this support will keep the immediate bias to the downside, leaving 122.81 as your first targeted area.
Here we would look initially to cover shorts, but we are seeing the market turn as well on the technical indicators so we would be looking for the market to break lower overall, even with the fact that
Christmas is round the corner.
If we do see a bounce initially off the 123.34 support we look for 123.63/68 to hold the topside and we will be selling into strength at these higher levels...we will hold shorts unless we break 123.83.