Chart, page-1063

IO futures has bounced pretty aggressively off the 100 day moving average. A breakdown through the upwards trendline, as per the red path, now seems very unlikely. The only question for me is will we consolidate around the recent highs being the point of resistance (i.e. $222-230), as per the green path. Or will it consolidate at lower levels to avoid bring further attention to itself, as per the blue path. With the momentum of that bounce I think the green path seems more likely at this stage. If this goes to plan it should translate to a pretty good remainder of the week for FEX.

Note: Current spot is about $6 above the "Next Contract in Front" (currently July) used in the chart above.

As far as FEX is concerned we have a solid bounce off the long term trendline and 61.8% Fibonacci retracement level. And if IO follows the green path in the chart above we should see a return to the 35-36c level pretty soon. Getting over the 40c mark will take a much stronger IO price than what we have seen to-date (i.e. beyond all time highs) or some kind of news catalyst.



ALL IMO DYOR.