Commentary: The argument is strong that the decline from 114.65 is in 5 waves, and we must respect the bearish potential, which is great. The decline fom 114.65 could be the beginning of wave 3 of larger 3 within the 5 wave bear cycle from 124.13. A break below 107.20 warrants a breakout strategy. Subjectively speaking, we favor a rally to the 111.50 area (about the 50% retrace of 114.65-108.22) in order to complete wave 2 before the next bear leg begins. Near term, aggressive traders may adopt a bullish bias above 108.58 but look to flip near 111.50.
Strategy: Flat
Al Bawaba
