The bulls are looking to target stops above the 124.50 high with a solid base now in place at 122.45.
After testing the 122.45 low late last week the bears were unable to take the market any lower leaving a double bottom in place, the market has seen plenty of buying early in the week as traders now look to target stops above the 124.50 highs. If a solid close is seen above the 124.50 high we are likely to see a test of the 125.85 high in the coming days.
Moving down to the 15 minute chart we can see that the most important level being watched by intraday players will be the 1:1 (Purple) and 38.2 Fibonacci level that coincide at 123.50/55. If this support level is tested and can attract some solid buying interest from the bulls a push for the stops above 124.50 is on the cards, however, any failure to do so will see the bears push this market lower for another test of the double bottom (Yellow) at 122.45.
* A 1:1 refers to a current correction being equal in length to a prior correction