Quarterly momentum rebounded off its equilibrium line and this could provide a near term fillip. However the range is likely to be narrow between 3,190 and 3,286. The 50- and 100-day moving average remain positively placed.
Support is at the breakout level of 3,190. The break above 3,190 indicates a target for 3,420, and this remains valid for the time being. Only a break below 3.190 indicates the upside is no longer valid.
QAF strengthens further
Prices broke out of a resistance and the 200-day moving average at 75 cents accompanied by volume expansion. The breakout indicates a target of 95-96 cents.
In the immediate term, there could be a temporary retreat given that quarterly momentum is at a two- year high. Prices had been in a two year downtrend, bottoming late last year at 56 cents. Any retreat should be supported at 75 cents below which the upside is no longer valid.
