My instinct says price going lower but valuation says different. Everything on this chart is indicating that UC should be valued higher. I agree it looks risky as the market is very bearish but I will look to enter around the 1.3450 area with a TIGHT stop unless it blows through that area. There's still a real possibility this will crush to the 1.3200 level.
Yellow line is copper/ gold ratio which has shown to be a good leading value line over the last few months. Blue line is bond yields. The oil supply/demand curve not shown as it obscured the chart too much but also indicating value should be higher.
Order cancelled
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Update to be posted - value lines have changed and this picture is no longer valid!
Nice analysis, but let me say sellers are still in control, and there's a very nice gap around 1.34470 need to be closed.
Entry1: should be next next support @ 1.32080
Entry 2: 1.29590
abajwa
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@el_farouk, thank you. Agree, the gap close is another reason I'm waiting for 1.3450 area to look for an entry, it also coincides nicely with the market structure for UC. I really do hope to see the 1.3200 level as I still have some shorts from higher up :-) but there has to be a reason for it to go there and at the moment I just can't see the drive for that to happen, but anything is possible!
UmarFarouk
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@abajwa, Good let's watch out more confirmation from the price.
Entry1: should be next next support @ 1.32080
Entry 2: 1.29590