Technicals | Jul 22 2020
Bottom Line 21/07/20
Daily Trend: N/A
Weekly Trend: Up
Monthly Trend: Up
Support Levels: 78.60 / 75.58 / 64.77
Resistance Levels: 111.00 / 123.19 / 142.80
Reasons for a sustained breather medium term:
→ Chinese demand remaining overall consistent
→ relentless production by the majors still in force
→ larger multi year [A]-[B]-[C] move north remains in play
→ price has remained robust throughout the early 2020 global market turmoil
‘The key here really is time. These higher degree patterns take time to complete, even basis the weekly chart that we are viewing here. Yet our trend interpretation implies that when the Wave-[B] does finally complete, a longer term Wave-[C] move to even higher levels will be the next cab off the rank…’
Everything from our perspective continues to remain on track. From a timing perspective we would still like to see the larger degree Wave-[B] take a little more time to complete via an A-B-C move as annotated on our chart tonight. Price is presently well overbought. So a pullback down towards the [US$/t] 90.00 mark would be more than acceptable. Such a move over the coming weeks would also likely unwind our divergence indicator back to oversold. Which would then create a platform for the next longer term bull run north to evolve from. A move that would have the potential to being 3 – 4 years in the making.
So if the above scenario were to unfold short to medium term, with buyers returning strongly circa the 90.00 price zone, then looking well ahead, a Wave-[A] vs Wave-[C] equality move would be targeting 170.00+. We continue to see immense bullish potential in this price chart, on the condition that the February 2020 lows circa 78.33, continue to hold strong from here.