Price has found support by the slightly ascending SMA200 and
then entered the Cloud resistance area. It even made a
tentative close above it, but failed to make a 2nd close.
It is currently trading inside the Cloud as trend has turned
neutral on this timeframe. The pattern
is that we see ever more narrow swings in a congestive manner.
Bulls would ofcourse want to see price establishing itself above
the Cloud and take out the previous high from Jan 20 at 1171.
The gradual recovery seen the last few days has lacked fuel
and bearish divergence is visible on lower timeframes which
this far has resulted in a couple of red candles, but no sharp
moves. Price touched the Daily R1 today and bounced lower
from there. If we see a close below the Daily pivot point at
1030 and the Cloud, chances are we will see a sell off
towards the support at 960. Below that
we have the previous low at 905. If
the current top is taken out next resistance sits at
the 1150 area. Note that the 1000 level has also
acted support.
then entered the Cloud resistance area. It even made a
tentative close above it, but failed to make a 2nd close.
It is currently trading inside the Cloud as trend has turned
neutral on this timeframe. The pattern
is that we see ever more narrow swings in a congestive manner.
Bulls would ofcourse want to see price establishing itself above
the Cloud and take out the previous high from Jan 20 at 1171.
The gradual recovery seen the last few days has lacked fuel
and bearish divergence is visible on lower timeframes which
this far has resulted in a couple of red candles, but no sharp
moves. Price touched the Daily R1 today and bounced lower
from there. If we see a close below the Daily pivot point at
1030 and the Cloud, chances are we will see a sell off
towards the support at 960. Below that
we have the previous low at 905. If
the current top is taken out next resistance sits at
the 1150 area. Note that the 1000 level has also
acted support.
