Looking at Recent Peak from May 6th, we were looking at prices to bottom between 12400 and 12600. Prices so far have bottomed at 12510 and have since then rallied to a peak of 13090. Today we are looking for prices to retrace some or all the gain that has been made since 12510.
Looking at the subdivisions of the move from May 6th, we have two possible routes going forward. If price manages to hold ground of 12510 this would indicate that the decline down is complete and we would be looking on further price increases to build by end this week/next week. Target for this are at 13500-13800 expected to be achieved by third/fourth week June.
However, if prices don’t manage to hold ground then expect further decline into mid next week and look for a bottom at 12100-12200. Only afterward we should see a rally going forward into fourth week June/Early July.
In conclusion, key to watch price action today to decide on next move forward. In either case, we are looking for a nearby bottom before we a short term rally.