There was a break of the major bear trend line on the EJ weekly chart several weeks ago. So far there has been strong up trend and now 2 attempts to reverse down. The 240m has formed a channel which is likely to retest the 121 level. Buying the low of the channel may lead to a good entry into a 2nd leg up in the weekly trend. At minimum, target the top of the channel for a retest around 123. If the 121 fails there is likely to be a test much further down to the 119.
Comment:
Price should test the top of the channel where a breakout is possible due to buying pressure on the weekly chart. Minimum target for the current trade is 123. stops 121.72
Trade closed: target reached:
I expect further upside above the trend channel line. There were 2 solid legs up inside the trading range and the weekly chart has triggered a 2nd attempt to make a new high.