The price could not stay above 4000.00 resistance level
and drop below it. Now SMA200 holds the market. Using the previous highs we can draw a trend line
which will act as a resistance. If the market moves upward, the price will have to break this trend line
for confirmation of the strength of buyers.
But it looks like the market is going to continue the falling. DMI is bearish
line tells us about the strength of sellers.
is overbought and probably we will see a reversal from the support level
histogram also supports a possible upward movement. But this upward movement can be short term with a target at the downtrend line. The price action at the downtrend line will tell us about further market movements. As sellers have power, we should be ready to get a reversal from the downtrend line and breaking below SMA200.
If so, the market will be able to continue the falling and reach the support zone
between 3700.00 and 3650.00 levels. Reversal signals from this zone should be used for buying for short and medium term.
For confirmation the uptrend, the price will have to break the downtrend line and move above 4000.00 resistance level
. But for this, the market will need fundamental news supporting this movement.
And what do you think about the further market movements? Please, share your ideas below this post! Also, I will be grateful, if you support my work by clicking LIKE button.