Background

Weekly and daily sentiment is much oversold at 18 month lows, and there are some early signs of divergence on momentum indicators.

Signals are not strong, but for today they are pointing to a temporary profit taking recovery.

Management and risk description

Allow room to buy dip and raise stop to entry if the first target is met.

Parameters

Entry: Market and 107.94, today's open in Asia.

Stop: 107.53, which is just below yesterday's low.

Target: 109.10, Friday's high and 109.90, Thursday's top.

Time horizon: Today only.