Monthly: Broken out of the channel formation to the downside. This is negative for sentiment and the downtrend has potential to return. A lower correction is expected. We have a 50% Fibonacci pullback level of 11148 from 8695 to 13601.
Weekly: The bearish engulfing candle on the weekly chart is negative for sentiment. A bearish Head and Shoulders is forming. A break of 11703 is needed to confirm follow through negative momentum. A sequence of weekly lower lows and highs has been posted.
Daily: A sequence of daily lower lows and highs has been posted. As this corrective sequence continues we look to set shorts on a rally at better risk/reward levels. Previous support level of 12102 broken. A mild correction has been posted from yesterday’s low, this is seen as a retest of the breakout level. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 12100, resulting in improved risk/reward. Expect trading to remain mixed and volatile.
We look toSell at: 12100
Targets: 11750 and 11150
Article produced by Pia First for Orbex Limited
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