Today's I would like to present the rule of four. "This rule stats that when prices breaks or fails to break a support or resistance level the next move should significant and a big move should be expected".
We are currently testing important support at 101.36 and a clear break below (ideally daily close below) this support will indicate that a big decline should be expected.
Looking at the larger picture, I'm looking for a correction of the rally from 75.56 to 105.44 and at 98.36 we will have seen a 23.6% correction of this rally. A 23.6% correction will be the very least I would expect and if we only does see a correction to this levels, it will imply a strong underlying uptrend. A more normal target would be a 38.2% correction, which would cause a decline to 94.00, which also marks the bottom of wave 4 of one lessor degree, which is a very common corrective target.
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