A promising rally target at 53.17 that looked like a lock-up a few weeks ago has become a 2-to-1 bet as a result of recent selling. Even so, the weakness has yet to exceed any significant prior lows on the hourly chart. As a result, one could say that the uptrend has been bent, but not to the breaking point. The positive outlook would change with just a little more selling, however, since a mere $1.15 decline from here would breach two lows, generating a fairly strong impulse leg on the intraday charts. In the meantime, the target will remain valid unless 47.26 is exceeded to the downside. The green line was a ‘mechanical’ buy in theory, but in practice I’d suggest using the signal generated thereof to create a ‘camouflage’ entry trigger on the very lesser charts. The one-minute bars look promising at the moment, but consider waiting for a second entry signal before you take the plunge, since there have been numerous false starts since 9:00 p.m. EDT.
