Monthly: Looks to be forming a bearish Ending Wedge pattern. A break of trend line support at 12145 and the measured move target is 8695. Rallies have stalled and found sellers near 13200.
Weekly: Looks to be forming a bearish Head and Shoulders pattern. A break of 11621 (neckline) is needed to confirm the pattern. The measured move would then be 9728. We posted a bearish Outside Week (often an indication that a top is in place) at the 78.6% pullback level of 13195 (from 13601-11706). This week has started with indecision (all trading inside last weeks bearish range)
Daily: Broken out of the channel formation to the downside. Levels close to the 61.8% pullback level of 12768 found sellers. Overnight trading remains mixed and volatile as we trade within this negative phase. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 12760, resulting in improved risk/reward.
We look to Sell on a rally at 12760
Targets: 12105 & 11800
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