Good morning. Today we have 10am data to look out for, overnight price has stayed within Friday’s range leaving a lot of volume trading around 508. In fact, 508.35 is our pivot point for today. Price has also made clear that it’s key to hold the 507 level, and that above 509 price is slippery. We have an ATH at 510.13 during the cash session and it is possible that price could be happy with that for the time being. So for today, we need to watch how price reacts at these levels.

With our ranges 506-507, 507-509, and 509-510.13 clearly marked we can make our scenarios around these numbers. Obviously since we’re looking to open in the middle of that range, 507 and 509 will be our key levels to see where price moves from there. Consolidation in this area is always an option.

1) If the market opens strong look to 509 and see how price reacts there. If it’s rejected quickly we can look to 507 for the pullback, but 508 first.
2) If the market opens weak look for a buy at 507 to keep price in range, target 509.
3) Below 507 we do have some buyers down to 506 but price is a little slippery. We could see 503.50 if the market doesn’t hold 506.
4) I’m not sure the market is up for it, but on a break of 509 target prior ATH 510.13 then 511, 513

William Wallace