Markets remain rather quiet as the re-consolidatory phase continues for the time being.
Short-term trends are up, though the past seven weeks’ recovery phase still appears to be poorly based corrective action only with the medium- to long-term downtrend structure undisturbed. Expect strong overhead resistances waiting at 5,350/70 initially, then at 5,440/60 to cap gains and unless this can be decisively broken, this market remains increasingly vulnerable to renewed bouts of weakness. Visible local support starting in and around the 5,060/80 area could now come under renewed examination, which if decisively breached, would regenerate a downward momentum and set up a challenge of the pivotal 4,950/70 region.
Trading strategy: Remaining on sidelines for now awaiting fresh opportunity to re-establish shorts.
Medium- to long-term downtrends are undisturbed with little evidence of a bottom to this major bear cycle yet, while short-term trends have again flattened out with a fresh period of choppy reconsolidation being experienced now. Expect immediate weakness to again uncover good support starting at 1,470/80 then again towards the historically important 1,430/40 with a clear and sustained break beneath this lower boundary required to regenerate downward momentum. Unless achieved, further two-way market action is anticipated with nearby overhead resistances visible at 1,530/40 initially.
Trading strategy: Remaining on the sidelines for the time being, awaiting next directional signal.
Medium- to long-term downtrends remain firmly in force with little evidence of a bottom yet, though short-term trends have flattened out with a fresh period of correction and reconsolidation being experienced now. 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 support 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.
Intermediate- to long-term downtrends are still firmly intact with little evidence of a bottom to this major bear cycle yet, while short-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 1,550/60 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 1,670/80 then again towards the pivotal 1,750/60 region, with a close above here needed to improve outlook.
Trading strategy: Continuing to utilize corrective rebounds to probe the short side.
The medium- to long-term downtrend structure remains firmly intact with little evidence of a serious bottom yet, though short-term trends have flattened out with an extended period of correction and reconsolidation being experienced at present. 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 utilize 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 being experienced now. However, in the absence of any significant basing activity, recovery attempts are likely to prove unsustainable at this stage with strong resistance anticipated at 15,500/15,600 initially, 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 short-term trends are 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 confirm 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 the 1,800.0 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 16.00/20 initially, 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 14.50/70 initially, then at 13.70/90.
Trading strategy: Monitoring current sharp corrective bounce for an opportunity to re-establish shorts.
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 suffered through any actions taken or not taken as a result of reading any information provided herein.
Friday, May 15, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: email@example.com