The monthly chart is showing a sentiment shift from bearish to bullish, and the weekly chart now has a confirmed uptrend with higher-lows and higher-highs. The daily has also formed a smooth uptrend with nicely-structured behaviour. 

Price is currently retracing down to key Fibonacci levels, as well as the area between the 8 & 21 moving averages, which can, in strong trends, act as an area of equilibrium, where buyers can shift to sellers and vice versa. 

Price has in the past found support at 2744 and 2644 respectively. 

If price action formed a small, or small-medium-sized candlestick in this area, it could provide an elegant entry opportunity as price prepares to resume the uptrend. 

We might consider an entry just above the high of this daily candle, with a stop-loss place below the low of the same candlestick. 

Aside from soft historical resistance at 2848, there is a potential new high level at 3033.

RJO Editorial Team