A very bearish correction target at 117.23 remains in play, notwithstanding the strong two-day rally that ended the week. The rally would make a tempting ‘mechanical’ short if it hits the midpoint pivot at 125.00. A 127.59 stop-loss would apply, o-c-o with an order to cover the short at 117.23. However, since the hourly chart would be robustly bullish at that point, a trader could just as easily rationalize going long. The solution calls for a ‘camouflage’ approach, regardless of whether your outlook is bullish or bearish. Longer-term, we are looking to stake out a long position, since we are treating the very substantial decline from January 30’s 138.50 high as corrective rather than the impulsive start of a bear market.
