Last week we presented the idea that Wave 5 of 5 was complete just below channel resistance from November. Prices have acted accordingly taking out initial support at 98.59 as they move lower sharply. Key lows going back to 2000 remain critical resistance going forward at 101. S/t, the small top that formed above 98.59 projects a sell-off to 97.21. The next support level beyond that is the top of the Wave IV correction at 96.71. New resistance is now the breakdown at 98.59. This correction from 100 fits as a Wave 4 and is expected to find support above 92.57 but can take time to consolidate the entire Wave 3 rally which lasted from 77-100. (240m chart) Levels: Support – 97.55, 97.21, 96.71 Resistance – 98.28, 98.59, 99.95.
Nomura