A corrective and reconsolidative phase continues for the time being although downside risk remains.
While medium to longer term downtrends are still intact with little evidence of a major bottom to this bear cycle as yet, shorter term trends are up with the past 6 weeks corrective and reconsolidative phase continuing for the time being. Expect strong resistance to again be encountered in and around the 5300/20 area and while a decisive break above here could extend near term gains closer to the 5440/60 zone, this market remains increasingly vulnerable to renewed bouts of weakness. Local support starts at 5180/5200 then again towards 5060/80 with a sustained break beneath here needed to regenerate downward momentum.
Trading Strategy: Holding shorts but keep stops above 5320 for the time being.
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. Believe local supports waiting at initially 1470/80 and even the historically important 1430/40 zone could come under renewed examination in the days ahead although only a clear and sustained break beneath this lower boundary would trigger more serious losses. Unless achieved further choppy two-way activity is likely with resistances now visible starting at 1530/40 then 1600/10.
Trading Strategy: Having secured profits on shorts, remaining on sidelines for the time being.
While medium to longer term downtrends remain firmly 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 2050/70 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 1930/40 then again towards the pivotal 1860/70 zone.
Trading Strategy: Continuing to re-establish shorts on bounces looking for a retest of the 1770 area.
Medium to longer term bearish patterns remain firmly intact and while shorter term trends are currently rather flat with a period of correction and reconsolidation being experienced, this market is looking vulnerable to renewed bouts of weakness in the days ahead. Believe the historically important 1550/60 region could come under fresh examination, which if decisively breached would trigger acceleration towards the 1500 and even 1450 areas prior to better demand being stimulated. However, until achieved further choppy two-way activity is likely with resistance now visble at 1670/80 then 1750/60.
Trading Strategy: Continuing to utilise corrective rebounds to probe the short side.
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 13000/13100 area with much needed corrective action currently being experienced. However, in the absence of any significant basing activity, recovery attempts are likely to prove unsustainable at this stage with strong resistance anticipated at initially 15500/15600 then again towards the 17000/17100 region with prices remaining vulnerable to renewed bouts of weakness. Support now at 14000/14100. Trading Strategy: With profits on shorts secured monitoring current correction ahead of re-establishing.
While the overall bearish outlook remains firmly in force with little evidence of any bottom to this major downward cycle as yet, shorter term trends have turned up with a period of corrective/reconsolidative action currently being experienced. However, expect immediate rally attempts to be restricted by strong overhead resistances waiting at initially 12500/12600 then 13400/13500 with only a clear and sustained break above this upper boundary capable of improving the underlying tone. Believe local support at 11600/11700 could now come under fresh test, which if decisively breached would signal10900. Trading Strategy: Continuing to utilise corrective bounces to re-establish shorts.
Medium to longer term bullish patterns remain firmly in force and while prevailing high levels of volatility suggest deep corrective action is likely to be an ongoing characteristic, prices are expected to trend closer to the 1800.0 region in the weeks ahead. Interim resistance should again be encountered in and around the 1745.0/50.0 area although pullbacks should now uncover good support starting in the 1660.0/65.0 zone. Only a clear and sustained break beneath here would trigger more serious near term falls and set up a fresh challenge of the more important 1600.0/05. Levels where better demand should be stimulated.
Trading Strategy:Would once again look to probe the long side on corrective dips looking for 1800.0 region.
While the overall technical outlook remains clearly bearish with lower targets still readable in the weeks ahead, interim objectives in and around the 11.20/40 area have been fulfilled with sharp corrective action currently being experienced. However, this appears poorly based and hence unlikely to prove sustainable at this stage with strong overhead resistances waiting at initially 16.00/20 then on approach to the 16.80/17.00 zone. Unless this upper boundary can be regained prices remain vulnerable to renewed bouts of weakness with support now waiting at initially 14.50/70 then 13.70/90.
Trading Strategy: Monitoring current sharp corrective bounce for opportunity to re-establish shorts.