Last update we highlighted “below 140 confirms recent up channel break…” Prices are now clear of the uptrend from last summer and sitting on a final shelf support at 138.79/68. A break of this level sets the stage for a drop to 135.51. More importantly and still lower there is 2-year channel support near 133 that aligns with Fibonacci retracements and symmetry targets. (weekly) S/t, channel support is containing the latest decline but any rally is expected to meet resistance at 140 (old support). From a wave perspective, waves-i to iii appear complete and a sideways wave-iv is consolidating losses with scope to reach 139.41 which is a previous high/low pivot zone (and channel resist.) (240min) Conviction: Medium Levels: Support – 140.08/139.97, 138.79, 135.51 Resistance – 140.53, 140.81, 141.16
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Nomura