Monthly: Looks to be forming a bearish Ending Wedge pattern. A break of trend line support at 12280 and the measured move target is 8548. Rallies have stalled and found sellers near 12800 & 13200.
Weekly: Looks to be forming a bearish Head and Shoulders pattern. A break of 11601 (neckline) is needed to confirm the pattern. The measured move would then be 9755. We posted a bearish Outside Week (often an indication that a top is in place) and this was followed by a confirmed double top formation. This week the rally has been sold into and looks to be forming a hanging man candle.
Daily: This weeks rally has rejected a move above the 12600 level and formed an evening star-type formation. Overnight has been sold into as we trade within this negative phase. Further downside is expected as we look to set shorts at current levels (12415) and on a rally at better risk/reward levels at 12550.
We look to Sell at 12415 and on a rally at 12550
Targets: 12115 & 11800
*UPDATE 05/09/2018 10:06:00 – 1st target reached