Looking at the log scale on the daily timeframe, we see that price is still
retracing some of the parabolic move that happened during 2017 especially.
A Triangle pattern has been broken to the downside and the SMA200 moving
average is also rolling over. This could lead to a sharp sell off and a move back
to the trendline marked in the chart, which would perhaps coincide with the
Yearly S1 pivot just abov the 3000 mark. The trendline could be the ultimate
support for a deeper correction.
But the current breakout could also be the bearish tendency to test the Monthly S1
pivot, which stands just below price now, around 6300.
A close below the Feb 6 low at 5920 would be a signal that more downside is
coming. Note that the log scale reflects the price movement in % rather than
absolute price changes, so it can be wise sometimes to take a look at it, especially
if markets are correcting strong or even parabolic moves.
Overall, price broke below the Yearly Pivot point, early this year at 11500, came
back and retested it from below and after that it has retested the broken SMA200.
Price is approaching the horizontal support at 6000 and if broken next horizontal
support may be the 4900 high from Sep 2017. Below that we are looking at the
3000 level with the trendline and the Yearly S1.
On the upside, if price bounce and close above the Triangle, it will relieve the
immediate downside pressure, and we could see a smaller rally back to the
SMA200 for a start.
retracing some of the parabolic move that happened during 2017 especially.
A Triangle pattern has been broken to the downside and the SMA200 moving
average is also rolling over. This could lead to a sharp sell off and a move back
to the trendline marked in the chart, which would perhaps coincide with the
Yearly S1 pivot just abov the 3000 mark. The trendline could be the ultimate
support for a deeper correction.
But the current breakout could also be the bearish tendency to test the Monthly S1
pivot, which stands just below price now, around 6300.
A close below the Feb 6 low at 5920 would be a signal that more downside is
coming. Note that the log scale reflects the price movement in % rather than
absolute price changes, so it can be wise sometimes to take a look at it, especially
if markets are correcting strong or even parabolic moves.
Overall, price broke below the Yearly Pivot point, early this year at 11500, came
back and retested it from below and after that it has retested the broken SMA200.
Price is approaching the horizontal support at 6000 and if broken next horizontal
support may be the 4900 high from Sep 2017. Below that we are looking at the
3000 level with the trendline and the Yearly S1.
On the upside, if price bounce and close above the Triangle, it will relieve the
immediate downside pressure, and we could see a smaller rally back to the
SMA200 for a start.