Technical Outlook:

As discussed yesterday, a badly needed rally is being materialized now. Please notice, that the rally has just begun, the immediate upside target is the 107.50 level. This rally could further extend to the 109.00 and 110.00 levels. 105.50 will act as a support now. Hold on to long positions taken yesterday, we shall suggest to move stops by tomorrow.

Chart Setup:

As indicated above, we are in the buy zone of the longer term dropping resistance line and in the sell zone of the intermediary uptrend line that starts from the 97.00 level. The prices would at least incline to test the back side of the uptrend line, indicated by arrow - at prices 109.00 to 110.00, before they decide to reverse. Our recommended BUY has materialized and it is still suggested to stay long. Resistance on the Daily charts is placed at the 111.00 level, while the 105.50 level will provide support now.
Bottom Line: Higher.

Trading Recommendations: Issued on April 11, 2012

Buy at 105.60/80, Stop at 105.00, Target Open, Minimum Expectations are 109.00 - 110.00.

Best regards