Price has bounced during Asia session and is now retracing some
of those gains, as it has hit the intraday support at 10750,
which is the confluence of Daily pivot point and Weekly S2.
If price closes below it , we might see a deeper move down
towards the current low, but chances are this level will support
price, as we also see a MACD cross coming. If price move up
from the 10750 level resistance sits at 12250 with the Weekly S1
and the Daily R1 pivot cluster, and slightly above that the horizontal
resistance around 12600. Ultimately we have Cloud resistance just
below 14000.
Overall, price has made a bearish breakout of a longer term triangle
formation and has sold off sharply, with a lower high and lower low
in place. Trend is bearish and SMA200 has rolled over. Since the
general picture is bearish on this timeframe, on the back of a Daily
Ichimoku Sell signal, probabilites still favour more downside. Bulls
would like to see price return to and breach above the Cloud, which
would be the first sign that a medium term bottom is in place.
Ultimate downward target is the Pivot cluster around 9000 and below
that the channel floor around 8000.
of those gains, as it has hit the intraday support at 10750,
which is the confluence of Daily pivot point and Weekly S2.
If price closes below it , we might see a deeper move down
towards the current low, but chances are this level will support
price, as we also see a MACD cross coming. If price move up
from the 10750 level resistance sits at 12250 with the Weekly S1
and the Daily R1 pivot cluster, and slightly above that the horizontal
resistance around 12600. Ultimately we have Cloud resistance just
below 14000.
Overall, price has made a bearish breakout of a longer term triangle
formation and has sold off sharply, with a lower high and lower low
in place. Trend is bearish and SMA200 has rolled over. Since the
general picture is bearish on this timeframe, on the back of a Daily
Ichimoku Sell signal, probabilites still favour more downside. Bulls
would like to see price return to and breach above the Cloud, which
would be the first sign that a medium term bottom is in place.
Ultimate downward target is the Pivot cluster around 9000 and below
that the channel floor around 8000.
