Our preference: The bias is to the upside as prices held support as momentum turns positive
Alternative scenario: look to reverse on a close below support levels near an upward sloping trend line
Support
Short-term 10-day moving average near 819.51.
Medium Term, upward sloping trend line at 592.
Resistance
Downward sloping trend line at 1,000
Comment: Momentum has turned positive as the MACD (moving average convergence divergence) generated a crossover buy signal. The MACD histogram also generated a buy signal by crossing above the center line. The RSI (relative strength index) broke out above trend line resistance reflecting accelerating positive momentum.
Our preference: The bias is to the upside as prices break short term resistance on positive momentum
Alternative scenario: prices are overbought, look to reverse on a close below short-term support
Support
Short-term 10-day moving average near 8,238.
Medium Term, support – upward sloping trend line at 6,000.
Resistance
Short-term resistance – downward sloping trend line at 9,300.
Medium-term resistance 11,628
Comment: Momentum has turned positive as the MACD (moving average convergence divergence) generated a crossover buy signal. The MACD histogram also generated a buy signal by crossing above the center line. The short-term stochastic surged higher reflecting accelerating positive momentum, although the current reading is overbought above the 80-overbought trigger level which could foreshadow a correction.
Our preference: The bias is to the upside on a break of short-term resistance as momentum turned positive.
Alternative scenario: prices are approaching overbought levels, look to reverse on a close below short-term support.
Support
Short-term 10-day moving average near 0.897.
Medium Term, support – February lows at 0.602
Resistance
Short-term resistance – 23.6% Fibonacci retracement at 1.24
Medium-term resistance 38.2% Fibonacci retracement at 1.64
Comment: Momentum has turned positive as the MACD (moving average convergence divergence) generated a crossover buy signal. The MACD histogram also generated a buy signal by crossing above the center line.
