Wide Range Market – breakout on the edge
On the Short-term ; the market has penetrated the short-term support area which is 1188 ; however , this breakout could not be trusted unless market would be traded below 1178.As we can notice on the chart ; the market is trading at a declining channel ; after reaching the lower band of that pattern the market has rebounded which means more upside movement on the coming trading session , but , in case market penetrated that channel and traded below the levels of 1178/1175 more downside prices is expected as we mentioned on the longer view.
the major short-term levels which the market would keep an eye on it 1178 – further drop below means 1150s would be the target for the market again. And higher 1220 which penetrations of it means toward 1250 and higher.
On the longer-term view : The view has become stabilized after a drop was expected further ; the market would range between 1250 and 1150; the penetration of one of this level would determine the new direction and continuously we would update the view as the factors are changing .
Daily Trend: Down
Weekly Trend: Range