Last week I wrote about the importance of the 1484 support level on the YG contract. We needed a close below that daily level in order to focus on downside targets and establish a pattern of lower lows/lower highs. The support held though, confirming that the daily chart is maintaining consolidation. Here is the updated chart:

Click on image to enlarge!

Price is currently holding at the 100 percent price projection of the June 13th low to June 22nd high, projected from the July 1st low. That’s the bold red line at the high. If that were to hold, it would imply that this is still working on establishing a pattern of lower lows/lower highs. More important though is the next .786 resistance level at 1543.50. If tested, a hold there would confirm that continued consolidation is in store. A break though would indicate that we’re likely to see a third test of the 1553 longer term resistance. A third test is much more likely to lead to a break and establish a clear upside pattern. Until we see a break in one direction or the other, focusing on the bold .786 retracements, the daily chart is in consolidation and the best bet is to focus on short term intraday targets!

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