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(U3) Corrective Cycle Remains In Play

  • RES 4: 105.325 High Jun 14
  • RES 3: 105.295 High Aug 8 and a key resistance
  • RES 2: 105.255 High Aug 9
  • RES 1: 105.230 High Aug 24
  • PRICE: 104.990 @ 05:26 BST Aug 29
  • SUP 1: 104.905/760 Low Aug 23 / 15 and the bear trigger
  • SUP 2: 104.741 76.4% retracement of the Jul 6 - Aug 8 bull leg
  • SUP 3: 104.620/104.570 Low Jul 11 / 6 and the bear trigger
  • SUP 4: 104.470 2.00 projection of the Jun 1 - 8 - 12 price swing

Schatz futures rallied last Wednesday resulting in a move above both the 20- and 50-day EMAs. The break higher signals scope for a stronger short-term recovery and an extension would expose the next key resistance at 105.295, the Aug 8 high. Moving average studies continue to highlight a medium-term downtrend and this suggests recent gains are part of a corrective cycle. Support to watch lies at 104.905, the Aug 23 low. A break would be bearish.

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