Bullish metals and maybe its because I've missed out on this recent rally but the Range Recoil model predications a medium probability of a decent upcoming correction. Unlikely i'll trade the short but view this more as a clear out of the bulls and hopefully an opportunity to get long at good levels.
RangeA Jan15 - Dec15 18.50-13.60
RangeB Nov15 - Dec15 16.35-13.60
For RangeA the recent rally has but this close to the 1.618 potential resistance. RangeB broke north and rally exactly to 1.618 pulled back to RangeB 50% and recent move took levels to RangeB 2.618% resistance.
Similar behaviour on both ranges; rallied to test highs and pulled sub 50% fib. Range 2 did this twice.
Model therefore predicts a correction to $15-16 before we head $22-25+
With all the attention and optimise for metals it seems tough to envisage such an aggressive pull back to the 50% fibs but then again this over zealous interest is probably the perfect setting to clear out weak length.
RangeA Jan15 - Dec15 18.50-13.60
RangeB Nov15 - Dec15 16.35-13.60
For RangeA the recent rally has but this close to the 1.618 potential resistance. RangeB broke north and rally exactly to 1.618 pulled back to RangeB 50% and recent move took levels to RangeB 2.618% resistance.
Similar behaviour on both ranges; rallied to test highs and pulled sub 50% fib. Range 2 did this twice.
Model therefore predicts a correction to $15-16 before we head $22-25+
With all the attention and optimise for metals it seems tough to envisage such an aggressive pull back to the 50% fibs but then again this over zealous interest is probably the perfect setting to clear out weak length.
