The medium- to long-term bearish outlook is undisturbed with little evidence of a bottom to this major downward cycle yet. Recent dramatic falls are currently being digested through much needed corrective and reconsolidative action. However, immediate recovery attempts should meet stiff overhead resistance starting in the 4,930/50 area with a clear and sustained break above here needed to extend near-term gains and set up a test of the 5,180/5,200 zone where better supply should then be stimulated. This market remains vulnerable to renewed bouts of weakness with supports now waiting at 4,460/80 then at 4,350/70.
Trading strategy: Having taken profits on shorts now looking to re-establish on corrective bounces.
Intermediate- to long-term bearish patterns remain firmly intact with a retest of the historically important 1,430/40 area now possible in the weeks ahead. However, interim supports should be anticipated at initially 1,530/40 then at 1,470/80 although immediate recovery attempts should be restricted to potentially sharp but probably short-lived corrective bounces only for the time being. Overhead resistances start now in and around the 1,580/90 zone then again at 1,630/40 with a clear and sustained break back above here needed to relieve the current downward pressure and signal more serious near-term gains closer to 1,700/10.
Trading strategy: With profits on shorts secured would remain on the sidelines for time being.
The medium- to long-term technical outlook remains decisively bearish with lower targets anticipated in the weeks ahead. The interim objectives in and around the 1,760/70 area have been fulfilled with a fresh period of correction or reconsolidation currently being experienced. However, immediate recovery attempts could be restricted by strong overhead resistance extending up to the 1,930/40 area with only a clear and sustained break above here capable of relieving the prevailing downward pressure and extending gains closer to 2,050/70 where better supply should then be uncovered.
Trading strategy: With profits on shorts now secured will await corrective bounces prior to re-establishing.
Intermediate bearish technical studies remain clearly in force with lower targets readable. However, interim objectives on approach to the 1,550 area have almost been achieved with a fresh period of correction and reconsolidation currently being experienced. Expect immediate weakness to again uncover good support in and around the 1,540/50 zone with a clear and sustained break beneath here needed to regenerate downward momentum and confirm a test of 1,490/1,500 next. Until that is achieved, further choppy two-way activity is anticipated with local resistances waiting at initially 1,690/1,700 and then at 1,750/60.
Trading strategy: With trends having turned down would continue probing the short side on corrective bounces.
Medium- to long-term downtrends remain firmly intact and while prices are now approaching their next objectives in and around the 10,500 region, immediate recovery attempts are likely to be restricted to potentially sharp but probably short-lived, corrective bounces only for the time being. Resistance is now anticipated starting in the 11,700/11,800 area with a clear and sustained break back above here needed to relieve the current downward pressure and trigger more serious near-term gains closer to the 12,200/12,300 zone where better supply should be stimulated. Note: A close under 10,500 would signal 10,000 next.
Trading strategy: With profits on shorts secured will await next signal prior to re-establishing.
Overall technical studies remain decisively bearish with little evidence of a bottom to this major downward cycle yet. Prices look to have uncovered good support on approach to the historically important 13,000/13,100 area with much needed corrective action currently being experienced. However, while this recovery attempt could challenge the 15,000/15,100 area ahead of meeting too much overhead resistance, gains are likely to prove both unsustainable and short-lived with this market still vulnerable to further bouts of weakness in the days and weeks ahead.
Trading strategy: With profits secured will await next correction ahead of re-establishing.
Medium-term technical studies have deteriorated with interim objectives in and around the 1,700.0 region having been achieved. However, the subsequent sharp correction looks complete for the time being with fresh tests of resistances likely waiting at initially 1,640.0/45.0 in the coming sessions. A clear and sustained break above here would encourage a further challenge of the important 1,700.0/05.0 region, with a close above here required to extend gains closer to the 1,750.0/05.0 zone. However, the speed and extent of the past couple of days recovery suggest further volatile two-way activity is likely with support now at 1,530.0/35.0.
Trading strategy: Remaining on sidelines for now awaiting clearer directional signal.
The overall technical outlook remains clearly bearish with lower targets still readable in the weeks ahead and 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 initially 14.60/80 then on approach to the 16.00/20 zone. Unless this upper boundary can be regained prices remain vulnerable to renewed bouts of weakness with a retest of 11.20/40 and even 10.00/20 readable.
Trading strategy: Utilising potentially sharp corrective bounces to probe the short side looking for 10.00 region.
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.
Thursday, March 26, 2020 Tel: + 44 (0)7710369208 – www.cliffgreenconsultancy.com – email: firstname.lastname@example.org