RTH extended the rebound off the 106.61 low to break above the bear channel resistance (from 113.28/112.37/111.82 highs), ending the bull flag consolidation pattern. The upside break initiated the next upleg towards 113.28 for a retest (Resistance 1). Clearance above would re-open the 114.30 all-time high (13 May 2011) (Resistance 2). Further strength there would offer scope for the Fibonacci projection at 115.91 (0.618x 98.57/113.28 from 106.61, Resistance 3) ahead of the equality target at 121.63 (1.0x 98.57/113.28 from 106.61, Resistance 4).
However, a break below 108.61 would negate and expose 106.61 (Support 1). A clean loss there would confirm a lower swing high under the 113.28 resistance and risk a deeper setback towards 104.57 (Support 2). Further weakness there would allow bears to seek 98.57 (Support 3) for a retest.
Trading Indication:
Short-term (or Intraday): Buy at 109.80 or lower;
Target at 114.30 and higher;
Stop Loss at 108.60 (1.0%)
Long-term: Possibly sell higher
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