Because the trend is still clearly up we’ll need to see a reversal pattern or 5-wave decline (on the hourly chart) to confirm that the impulse from 105 to 117 is complete. We need to see a 5 wave down, 3 wave up series to signal that a reversal is underway. Near-term, the first price signal that a top might be forming is 115 where the latest pivot and channel support align. Then 113.86 is the next key support. Resistance is the o/n high at 117.05. From an Elliott perspective we favor that this 116 zone will mark the high of wave-3 and therefore we expect a drawn out wave-4 correction to begin soon and mark time between 112/116. Conviction: Med/High Levels: Support – 115.46, 115.00, 113.86, 113.17 Resistance – 117.05, 117.89
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