Weekly: The Index currently trades within an ending wedge formation. Price action has once again rejected a move above the pivotal 5540-50 area. Last weeks shooting star candle has led to weaker price action this week.
Daily: A bearish channel looks to be containing price on the Daily chart. An evening star formation has led to a reversal in gains and brief rallies continue to attract sellers. Momentum is stalling and a deeper correction looks likely.
Intraday: Yesterday’s attempted rally has once again failed with prices reversing from a high of 5512. Bearish candles litter the 4-hour chart with a hanging man and inverted hammer leading to a solid one way drive lower. A bearish head & shoulders pattern looks to be forming and we expect a confirmed break of the neckline to target the 5300-5325 area.
Action: We look to sell at current levels (5465) and on a rally to 5500
Stop: 5550
Targets: 5425, 5360 & 5300
UPDATE: Prices have reached the 1st target. We continue to look to re-sell at 5500.
Price has now reached 2nd target. Stop to entry
