Markets ease into the end of the week with supports likely to come under fresh attack
The medium to longer term downtrend structure remains in force and despite shorter term trends currently being pointed up, this past couple of months recovery phase still appears to be poorly based corrective action only. Expect resistances waiting at initially 5,350/70 then 5,440/60 to restrict remaining upside potential with prices increasingly vulnerable to renewed bouts of weakness in the days ahead. Believe local support starting in the 5,060/80 zone could come under fresh examination, which if decisively breached would signal acceleration towards the 4,950/70 and even 4,730/50 zones where better demand should then be stimulated.
Trading strategy: Remaining on sidelines for now awaiting fresh opportunity to re-establish shorts.
While medium to longer term downtrends are undisturbed with little evidence of a bottom to this major bear cycle as yet, shorter term trends have again flattened out with a fresh period of choppy reconsolidation currently being experienced. Expect immediate weakness to again be cushioned by the historically important 1,430/40 area with only a clear and sustained break beneath here likely to regenerate downward momentum and set up a test of initially 1,380/90. However, until/unless achieved further two-way market activity is favoured with overhead resistances now visible starting at 1,490/1,500 then 1,530/40.
Trading strategy: Remaining on the sidelines for time being awaiting next directional signal.
While medium to longer term downtrends remain rmly in force with little evidence of a bottom as yet, shorter 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 supports now visible starting at 1,930/40 then again towards the pivotal 1,860/70 zone.
Trading strategy: Continuing to re-establish shorts on bounces looking for a retest of the 1,770 area.
While intermediate to longer term downtrends are still rmly intact with liitle evidence of a bottom to this major bear cycle as yet, shorter term trends have flattened out with a fresh period of reconsolidation currently being experienced. Expect immediate weakness to continue to uncover good support on approach to the historically important 1550/60 area and until/unless this can be decisively broken further choppy two-way market activity is anticipated for the time being. Local resistances remain in place starting at 1670/80 then again towards the pivotal 1750/60 region, with a close above here needed to improve outlook.
Trading strategy: Continuing to utilise corrective rebounds to probe the short side.
While the medium to longer term downtrend structure remains rmly intact with little evidence of a serious bottom as yet, shorter term trends have flattened out with an extended period of correction and reconsolidation currently being experienced. Expect strong overhead resistance in the 12,500/12,600 area to continue to limit upside potential with only a clear and sustained break above here capable of extending near term gains and setting up a challenge of the 13,400/13,500 region where better supply should then be stimulated. Unless achieved further choppy two-way action likely with support at 11,600/11,700.
Trading strategy: Continuing to utilise corrective bounces to re-establish shorts.
While overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle as yet, prices look to have uncovered good support on approach to the historically important 13,000/13,100 area with much needed corrective action currently being experienced. However, in the absence of any signi cant basing activity, recovery attempts are likely to prove unsustainable at this stage with strong resistance anticipated at initially 15,500/15,600 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.
Underlying technical studies remain decisively bullish and while shorter term trends are currently rather flat with an extended period of reconsolidation currently being experienced, prices look set to re-challenge important overhead resistance in and around the 1,745.0/50.0 area once more. A clear and sustained break above here would fully con rm resumption of the main upward cycle with next objectives then set in and around the historically important 1,800.0 region where better supply should then be stimulated. Local supports are now visible starting at 1,685.0/90.0 then again towards 1,660.0/65.0
Trading strategy: Continuing to buy dips/holding longs looking for 1800.0 region.
Short to medium term technical studies have clearly improved with prices breaking decisively to the upside form the con nes of the past months reconsolidative pattern. The market looks capable of challenging the 17.50/70 area in the days ahead and while interim resistance should be encountered in and around the 16.80/17.00 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 region
Cliff Green Consultancy 2020
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 suﬀ ered through any actions taken or not taken as a result of reading any infor-mation provided herein.
Monday, 18th May, 2020 Tel: + 44 (0)7710369208 | Web: www.cliffgreenconsultancy.com | Email: firstname.lastname@example.org