SHORT-TERM (today 5 days out)

Please note today’s letter begins September 2016 contract analysis. For Tuesday, both 46.09 and 45.14 can firmly contain intraday activity, beyond which the next notable level is expected intraday. Upside today, pushing/opening above 46.09 signals 46.57, able to contain strength into later week and below which long-term support in the 43.42-77 region is attainable over this time horizon. Pushing/opening above 46.57 allows 47.04, possibly 47.57 intraday, while closing today above 46.57 reverses momentum through the balance of the week, 49.76 then considered a 3-5 day target able to contain buying through next week and a meaningful upside continuation point into August trade. Downside Tuesday, breaking/opening below 45.14 signals 44.53, able to contain session weakness. Closing today below 44.53 indicates the 43.42-77 region tomorrow, able to contain selling through August trade and above which a long-term buy signal remains firmly intact.

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MID (2-3 wks) & LONG TERM (2-3 ms )

The 43.42 formation page 2) can absorb selling through the balance of the year, above which the next 5-8 months should yield 69.60- 72.50. Near-term, 49.76 can contain weekly buying pressures when tested, with a settlement above 49.76 indicating 55.56 within several weeks, able to contain strength into September activity. A settlement above 55.56 signals 61.71 within 3-5 more weeks, the targeted 69.60-72.50 region within several months, a narrowing range of long-term resistance likely to contain annual buying pressures when tested (page 2). Downside, a weekly settlement Friday below 43.42 would be considered a failed long-term buy signal, essentially a valid sell signal through summer trade, 37.31 then expected within several weeks, last February’s 26.05 low attainable within 3-5 months.

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