SHORT-TERM (today 5 days out)
For Tuesday, 48.48 can contain session weakness, above which 50.64 remains a 1-2 day target. Upside today, 49.82 can contain initial strength, while pushing (especially opening) above 49.82 indicates 50.64 intraday, able to contain session strength. A settlement today above 50.64 indicates a good weekly low, 52.34 then expected within several days, 54.02 by the end of next week where the market can top out on a weekly basis as well as representing a meaningful upside continuation point into later June. Downside Tuesday, breaking/opening below 48.48 signals 47.54 intraday, while closing today below 48.48 indicates a good weekly high, long-term support in the 45.36-56 region then considered 2-3 day target able to contain selling into July activity.
MID (2-3 wks) & LONG TERM (2-3 ms)
The 45.36-56 region can absorb selling through the balance of the year, above which a long-term buy signal remains in effect, 56.53 expected over the next 3-5 weeks, 63.14 within several months, the next 5-8 months likely to yield 69.73 – 74.44, a narrowing range of long-term resistance likely to contain annual buying pressures when tested (page 2). For those ‘big picture’ traders, 45.36 should be considered the start of a narrowing range of long-term support down to 43.37 (see chart) able to contain selling through July. It would be a settlement below 43.37 that indicates a good high into later year, 38.24 then considered a 3-5 week target, 26.05 expected over the following several months.
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