A quiet consolidatory session as recent corrective action looks to be drawing to a close.
Short-term uptrends remain intact. However, the past month’s strong recovery still appears to have been a poorly based corrective action and hence unlikely to prove sustainable. Expect immediate weakness to uncover support in the 5,050/60 area, which if decisively broken, would put values under renewed downward pressure and signal a retest of 4,900/20 initially, then 4,730/50 where better demand should then be uncovered. Any further bouts of strength should again meet strong overhead resistance starting at 5,180/5,200 with a close above here needed to extend near-term gains closer to the 5,320/40 zone.
Trading strategy: Would be looking to re-establish shorts on break of local support areas looking for initially 4750 area.
The overall bearish outlook is undisturbed with little evidence of a bottom to this major downward cycle yet, but good support looks to have been uncovered on approach to the historically important 1,430/50 area with much-needed corrective action being experienced now. However, anticipate strong overhead resistance to be encountered at 1,550/60 initially, with only a clear and sustained break back above here capable of extending near-term gains and setting up a challenge of the 1,630/40 zone where better supply should then be stimulated. A period of accumulation is required prior to better recoveries.
Trading strategy: With profits on shorts secured will monitor corrective rebounds for opportunity to re-establish.
Intermediate- to long-term downtrends remain firmly intact, though interim downside objectives have been fulfilled with much-needed corrective and reconsolidative action being experienced at present. However, in the absence of any significant basing activity, immediate recovery attempts are likely to prove unsustainable with strong overhead resistances waiting at 1,970/80 initially, then 2,050/60 likely to cap gains for the time being. This market remains vulnerable to renewed bouts of weakness in the days ahead and while local support should be uncovered in the 1,830/40 zone a break beneath here would signal 1,760/70 next.
Trading strategy: Remaining on sidelines for time being as corrective/consolidative phase continues.
Intermediate- to long-term technical studies remain clearly negative with lower targets still possible, but interim objectives have been fulfilled with a fresh period of correction and reconsolidation developing now. However, strong resistance continues to be encountered on approach to the 1,750/60 area with prices once more appearing vulnerable to renewed bouts of weakness. Local support in the 1,630/40 area could come under fresh examination in the coming sessions, which if decisively breached, would regenerate downward momentum and set up a retest of the more important 1,570/80 region where better demand should then be stimulated.
Trading strategy: Continuing to utilize corrective rebounds to probe the short side.
The overall bearish outlook remains firmly in force with little evidence of any bottom to this major downward cycle yet, but short-term trends look to be flattening out with recent falls being digested through a combination of correction and reconsolidation. Strong overhead resistances waiting at 12,200/12,300 initially, then 12,900/13,000 should restrict upward progress and unless this upper boundary can be decisively broken, this market remains vulnerable to renewed bouts of weakness in the days and weeks ahead. Local support is now anticipated at 10,800/10,900 initially.
Trading strategy: Monitoring the current corrective bounce for opportunity to re-establish shorts.
The overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle yet, though 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 at present. However, in the absence of any significant basing activity, recovery attempts are likely to prove unsustainable at this stage with strong resistance anticipated at 16,000/16,100 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 bullish patterns remain firmly in force and with the recent major corrective and reconsolidative phase now confirmed to be complete, the main upward cycle looks to have resumed. Prices could head towards the 1,800.0 region in the weeks ahead and while interim resistance should be encountered in and around the 1,755.0/60.0 area, immediate pullbacks are likely to be restricted to potentially sharp but probably short lived corrective dips only for the time being. Supports are now visible starting at 1,640.0/45.0 with a close beneath here needed to extend near-term falls closer to the 1,600.0/05.0 region.
Trading strategy: Would once again look to probe the long side on corrective dips looking for 1,800.0 region.
The overall technical outlook remains clearly bearish with lower targets still readable in the weeks ahead, though interim objectives in and around the 11.20/40 area have been fulfilled with sharp corrective action being experienced now. 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 13.70/90.
Trading strategy: Monitoring current sharp corrective bounce for 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, April 17, 2020 | Tel: + 44 (0)7710369208 | www.cliffgreenconsultancy.com | email: firstname.lastname@example.org