Overall uptrend is still supported as the price stays above MA50, but the latest momentum is bearish. Looks as if trying to test lower levels.
Last week’s engulfing red candle indicates that the buyers are still not strong enough above 1300. MA10 on weekly chart resisted the upward move, and now we are back at 1280 level to test MA20 once again.
I think that this time MA20 support might be broken. The price needs to go further down to collect more long positions, the best candidate for the next low would be the intersection of weekly cycle low and MA50 around ~1245.
Firstly, the low level_1260 of 6th October needs to be broken. Breaking this level will make a lower low, confirming resumption of the 1356-1260 downtrend.
Looking at the indicators:
Lower line of the ascending channel (of 2017) on RSI indicator is just below to be tested. Breakout of the channel would mean re-visiting RSI-30 level below.
Both the slow and fast stochastics favor downside move.
Also, we have MACD cross as a further bearish signal.
Last week’s engulfing red candle indicates that the buyers are still not strong enough above 1300. MA10 on weekly chart resisted the upward move, and now we are back at 1280 level to test MA20 once again.
I think that this time MA20 support might be broken. The price needs to go further down to collect more long positions, the best candidate for the next low would be the intersection of weekly cycle low and MA50 around ~1245.
Firstly, the low level_1260 of 6th October needs to be broken. Breaking this level will make a lower low, confirming resumption of the 1356-1260 downtrend.
Looking at the indicators:
Lower line of the ascending channel (of 2017) on RSI indicator is just below to be tested. Breakout of the channel would mean re-visiting RSI-30 level below.
Both the slow and fast stochastics favor downside move.
Also, we have MACD cross as a further bearish signal.