Corrective phase continues as underlying technical studies look to be steadily improving.
Long-term downtrends are still intact with the past couple of months’ recovery phase considered to be corrective action only, though underlying technical studies look to be improving with a potential basing process under construction. However, immediate upside potential looks rather limited with this market remaining vulnerable to sharp bouts of weakness as part of this accumulative process develops. Strong overhead resistances are visible now starting at 5,450/70 then again towards the 5,580/5,600 area with local support waiting at 5,300/20 then 5,140/60 likely to come under fresh examination in the days ahead.
Trading strategy: Remaining on sidelines for now as the corrective/consolidative phase continues.
Medium- to long-term downtrends are undisturbed with little evidence of a bottom to this major bear cycle yet, while short-term trends have again flattened out with a fresh period of choppy reconsolidation being experienced now. Immediate weakness continues to be cushioned on approach to the historically important 1,430/50 area keeping values range bound for the time being with only a clear and sustained break beneath here capable of regenerating downward momentum. Strong overhead resistance is visible in and around 1,530/40 with a market close above here needed to complete a secondary base.
Trading strategy: Remaining on the sidelines for the time being, awaiting next directional signal.
Medium- to long-term downtrends remain firmly in force with little evidence of a bottom as yet, though short-term trends have flattened out with a fresh period of correction and reconsolidation currently being experienced. Expect immediate rally attempts to again meet strong overhead resistance on approach to the 2,050/70 area with only a clear and sustained break above here capable of improving the underlying technical tone. Unless achieved, this market remains vulnerable to renewed bouts of weakness with local support now visible starting at 1,930/40 then again towards the pivotal 1,860/70 zone.
Trading strategy: Stepping to the sidelines for the time being as trends flattening out.
Intermediate- to long-term downtrends are still firmly intact with little evidence of a bottom to this major bear cycle yet, while immediate weakness continues to be cushioned by support on approach to the 1,550/70 area keeping values effectively range bound for the time being. However, resistance which extends up to the 1,750/60 region should restrict rally attempts for the time being with only a clear and sustained market close above here capable of improving the underlying technical tone and triggering more serious advances with next targets then set in the 1,800/20 zone.
Trading strategy: With prices back into a trading range situation, remaining on the sidelines for the time being.
Medium- to long-term downtrends are undisturbed, while short-term trends continue to flatten out with an extended period of correction and reconsolidation currently being experienced. Expect the current up-leg to again meet strong overhead resistance on approach to the important 13,400/13,500 area with only a clear and sustained break above here capable of improving technical tone with a secondary bottoming then becoming complete. However, until/unless achieved, further choppy two-way activity is favoured for the time being with support waiting at 11,800/11,900 initially.
Trading strategy: Stepping to the sidelines for the time being as reconsolidative phase continues.
While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle yet, prices look to have uncovered good support on approach to the historically important 13,000/13,100 area with much needed corrective action being experienced now. However, in the absence of any significant basing activity, recovery attempts are likely to prove unsustainable at this stage with strong resistance anticipated at 15,500/15,600 initially, then again towards the 17,000/17,100 region with prices remaining vulnerable to renewed bouts of weakness. Support now at 14,000/14,100.
Trading strategy: With profits on shorts secured, monitoring current correction ahead of re-establishing.
Overall technical studies remain decisively bullish with prices expected to trend towards the 1,800.0 region in the days and weeks ahead. While interim resistance should again be encountered in and around the 1,760.0/65.0 area, immediate pullbacks are likely to be restricted to potentially sharp but probably short lived, corrective action only for the time being. Local support should now be anticipated on approach to the 1,700.0/05.0 zone then again towards the more important 1,660.0/65.0 level where better demand should then be stimulated. Only a close beneath here would damage the tone.
Trading strategy: Continuing to buy dips/holding longs looking for the 1,800.0 region.
Short- to medium-term technical studies have clearly improved with prices breaking decisively to the upside from the confines of the past months’ reconsolidative pattern. The market looks capable of challenging the 18.80/19.00 area in the days ahead and while interim resistance should be encountered in and around the 17.50/70 region, immediate pullbacks are likely to be limited to corrective dips only for the time being. Local support is now visible staring at 15.40/60 then again towards the more important 14.50/70 zone with only a close back under here likely to trigger deeper near term falls.
Trading strategy: Preferring the long side now, but only on corrective dips looking for 17.70/18.80 regions.
The data shown and the views expressed on this sheet are for information purposes only and do not constitute recommendations to trade. Cliff Green Consultancy does not accept any liability for loss or damage suffered through any actions taken or not taken as a result of reading any information provided herein.
Thursday, May 21, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: email@example.com