The 112p area proved resistance as expected with a high yesterday of 111p. This was sold into leaving a closing SP slightly below what I've labelled as a wave 4 high which gives us some uncertainty as to future direction in the short term.
Today's low (so far) was bang on the 50% Fib of the rise as shown by the 30 minute chart below. The interesting thing on that chart is that the rise looks to have 5 waves to it so could be bullish. Note how there was a bearish RSI divergence on the 30 minute chart at that 112p resistance and a bullish one on the daily at 88.75p.
Today's low (so far) was bang on the 50% Fib of the rise as shown by the 30 minute chart below. The interesting thing on that chart is that the rise looks to have 5 waves to it so could be bullish. Note how there was a bearish RSI divergence on the 30 minute chart at that 112p resistance and a bullish one on the daily at 88.75p.
As I've previously posted, I can't short this so my strategy for going long is to either wait for the main uptrend support around the 83p mark if this is bearish, or to go long on a break above 111p if it's bullish. We have to be careful of that downtrend resistance at 118.5p which was from the 248p and 205p highs.
Below the 61.8% Fib at 97p would favour the downside and as long as today's low of 99.75p holds then the upside is favoured.
Below the 61.8% Fib at 97p would favour the downside and as long as today's low of 99.75p holds then the upside is favoured.