Before we get started on this evening’s analysis, there are two things worth pointing out from this morning’s publication. The first, that we remain well within the range we slated, which likely means that we’ve seen the end of last’s night’s decline, at least temporarily. Second, that we did get a brief correction, and we managed to pick out the reversal point almost to the cent. Bragging rights aside, why is this important? Well, it validates our upside key level (i.e. resistance) and suggests there’s probably no justification for revising that level for tonight’s session. We may bring support a little higher in an attempt to tighten things up and get in on a scalp trade (more on that shortly), but as things stand, our topside looks nicely defined.
So, as we head into the late session today, where are we looking to get in and out of the markets on any volatility, and what will we be looking at for targets and risk management? Take a quick look at the chart to get an idea of our key levels.
As the chart shows, we are going to maintain our in term resistance as per what we’ve just discussed, at 426 flat. We could be a little picky and move it down to 425.8 (the candlestick’s high) but not this time.
Looking south, we’re revising in term support to 421 flat – about five dollars higher than slated this morning. This means we’ve got a real tight range – somewhere in the region of four and a half dollars – so intrarange is off the table.
Looking at breakout, just as with this morning, if we close above resistance it will initiate a long position towards an initial upside target of 432.24. A slightly more aggressive entry could target 436, the next step up on the charts.
Looking the other way, a break below the revised in term support will signal a nice short scalp position towards 417 flat. Stops on all trades just the other side of the entry (minimum of one dollar for every two on offer) to limit the downside.
Charts courtesy of Trading View