Monthly: The downward trending resistance line dominates medium term price action. A shooting star candle has been posted and further negative flows have continued. A symmetrical triangle contains the range since December 2015. We look for a possible re-test of the upward trending support line (1200 area)
Daily: Price action looks to be forming a head & shoulders formation. The reaction lower from 1320 is negative for sentiment and tentative support around 1300-1305 is expected to be re-tested. A break from here and subsequent break of the neckline could lead to an extended correction towards the 61.8% Fibonacci retracement at 1254.
Action: We look to Sell at 1312
Stop: 1332
Target: 1255 and 1235
