Richard Perry
Independent Analyst
Another big candle yesterday has formed a “long-legged doji” (a neutral candle with the open and close at the same levels in the middle of a big candle range, denoting uncertainty within the prevailing trend). This is not as much of a concern to the bears as the failed hammer was last week and for now I am not anticipating any significant reversal. In any case, the momentum indicators are all falling away still and the trading overnight during Asian hours has once more been negative again. During my videos yesterday I drew in a downtrend on the intraday hourly chart running from the 3rd Feb high across all the recent lower highs. This downtrend capped the bounce yesterday almost to the pip before the sellers resumed control. The configuration of the hourly RSI, MACD and Stochastics also suggest that the rallies are still being seen as a chance to sell. There is now resistance in place at $1210.20 under $1214.90, whilst $1223.10 is now the key reaction high. I expect further downside pressure to retest $1191.00 and then back towards a full retracement at $1168.25 in due course.
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