Technical
Monthly: The corrective sequence has found buyers close to the 38.2% Fibonacci retracement. A bullish hammer has been posted and the reaction higher is positive.
Weekly: Multiple weekly trend line support has been breached, however, prices have broken back above the more major 2016 FEB/JUN trendline support. Horizontal resistance lies at 7336 and rallies to here should initially be capped.
Daily: The aggressive rally from 6850 has stalled at the top of the mild bearish channel. With the rally also being capped by the daily ichimoku cloud. Intraday bias is mildy bullish after 2 strong days of gains, however, a deeper correction cannot be ruled out, although, this may set the scene for a possible reverse head & shoulders formation.
