Here on the 25x3 H/L chart the index finally broke below 5,875, a level where it has found support on no less than 6 previous occasions. It can also be seen that there now appears to be resistance forming at the 6,000 level (red horizontal line). And the bears are also having a go at the bullish support line. Given the recent price action, the bulls may get the index back in to the recent trading range on a bounce but for now, the support is broken and we have active targets of 5,425 and 5,625.
The closing 25x3 chart only plots based on the closing level of the index and again, today we had a new double bottom sell signal, with the bears pushing the index through a level where the market previously got support from the bulls. And it can also be seen that since early May where the bulls have come back in to the market, they are getting pushed back by the bears at lower levels. The pattern has a nice downward slope to it. The first move down from the most recent high gave a target of 5,625 which has now been confirmed by today's action moving below the previous column of 5 0's.
For the bulls, the long term (blue) bullish support line is still in place and there are two shorter term support lines that the bears will need to push through.
Of course its just one battle in the broader war but given where the recent price action has been and the break of that recent support level, it could mark the start of a more decisive move down. We'll see !
No comments:
Post a Comment