Today on the daily chart the bar has pushed up through the 80cps level, the 'real' potential resistance zone would appear to begin at 82.5cps up to 86cps.
You can see it more clearly on the 90min intraday chart
The wave chart shows supply has eased considerably recently. Note the 16 (16mil) down bar circled, at the time this looked a bit ominous, but in hindsight appears to be potential absorption. The following bar showed no follow through supply, and the next down bar contained only 5mil, which was very low (lack of selling pressure). This was confirmed yesterday, with only 6mil to the downside, and today being up strongly.
Whether this is the real deal or not appears to depend on the 86cps level for now. A break up through that, followed by a low volume down bar (test for supply) would offer some confirmation.
Taking a count through the current congestion, gives an agressive target of 1.255 & a more conservative target of 1.02, however that is for a breakout through 86 in the very near term. Should the sideways consolidation continue between roughly 70 & 80cps, further strength may be acquired.
A substantial break below 70cps would make all of the above 'rubbish', and 60.5cps would be the next lower target.
cheers
AGO Price at posting:
82.0¢ Sentiment: Hold Disclosure: Held
