A firm bounce has reinforced our view of an end to the corrective downside phase and leaves risks for a re-energizing of bull pressures this week and mid-January.
The strong rally to end 2014 and begin 2015 (above Fibo extension at 156.77 and 157.13) re-energized the bullish theme from the 154.58 base and leaves upside threats intact.
Momentum: The 8-day RSI, short-term momentum is correcting from OB, leaving scope to go still higher this week.
Short-term Outlook - Upside Risks:
- We still see a positive tone with the bullish threat to Fibo extension targets into mid-January, now 157.49 and 157.88.
- Above here sees further targets for mid-month at 158.27 and 158.56.
What Changes This? Below 156.10 eases bull risks; through 155.56 signals a neutral tone, only shifting negative below 154.58.
- We see an upside bias for 156.90; break here aims for 157.10, maybe 157.26.
- But below 156.30 opens risk down through 156.10, towards 155.74.
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