Last time I wrote about the small recovery as August turned into September.
We have since recovered a bit but suggest we may have more to go on the upside...possibly to the Long MA acting as resistance this time.
I was, as usual, being conservative but it was interesting that prices rose to the Long MA (currently 438) on the day after my commentary and only to come back off again...good support/resistance that Long MA. The decline was not wholesome for the market and the lower low saw a gathering of ammunition for a further try higher which it duly did up through the Medium MA (currently 451 %).
However, it was there that the market started to show signs of strain - two Indecisive Doji Crosses and ultimately a failed Key Reversal Up last Wednesday as the top end ran into the key 50% Fib of the December 2016 - July 2017 move at 463. Prices have come off since then back below the Medium MA possibly with a Tweezer Top Pattern...I'm not convinced on that one but Friday's first move back below the Medium MA is interesting.
So what now? Well, at this time, we're caught between the Medium MA and the Long MA, classic Neutral territory and that is why I've changed the bullet point above to reflect this despite both these MAs pointing a little upwards. The previously mentioned 50% Fib is more of a concern if the market tries upwards as the recent 50% Fib resistance is not that far away at 475 /. However, with higher lows, this market does not seem too keen to try lower just yet...so sideways perhaps.
Support is currently at 454, 441, 438, 434%, 426, 413 /, 400% and 394 /.
Resistance is currently at 451 %, 456 %, 458, 463, 468, 475 /, 481 and 485.
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