Prices are now trading above congestion around 15.00 as momentum studies post positive divergence and continue to strengthen. The proprietary Tension Indicator (not shown) is also improving.
In the coming months, expectations are for higher levels to attract, with focus turning to congestion around 20.00 and the 20.20, (23.6%) of the August-February fall. A close above the 23. 01 high of November 2016 is needed, however, to confirm a fresh rally, with subsequent gains opening up the 26.50, (38.2%) and the 26.72 high of June.
A close below the 9.97 low of February would add fresh downside pressure to price action and target critical support at the 9.39 contract lows of 2006. An unexpected break would confirm fresh downside tests as the 2015 bear trend gains fresh traction.