I've just reworked this a little bit -
1) Changed the colour of the target areas from yellow to blue for clarity.
2) Also the original bottom line I had drawn in black, I've changed to grey and added a further line which I think better represents where we'll end up.
So what happened since last update? We couldn't hold in the top support, so we broke down and as you can see from previous drops (left hand side) it's a pretty uninterrupted drop when it happens. There are people calling for support here at 7500 which I can only presume they are looking at the very brief touch of that area in early April. but personally I don't think that's anywhere near strong enough to hold.
So I feel 6850 is a reasonable target from here. On the plus side, the daily RSI is pretty close to realistically looking for a bounce. MACD will obviously lag a bit but RSI tells a story.
If we fail this zone then I really think the situation could become quite dire, dropping to 6k for example would invalidate a lot of bounce set ups and I think people would panic.
1) Changed the colour of the target areas from yellow to blue for clarity.
2) Also the original bottom line I had drawn in black, I've changed to grey and added a further line which I think better represents where we'll end up.
So what happened since last update? We couldn't hold in the top support, so we broke down and as you can see from previous drops (left hand side) it's a pretty uninterrupted drop when it happens. There are people calling for support here at 7500 which I can only presume they are looking at the very brief touch of that area in early April. but personally I don't think that's anywhere near strong enough to hold.
So I feel 6850 is a reasonable target from here. On the plus side, the daily RSI is pretty close to realistically looking for a bounce. MACD will obviously lag a bit but RSI tells a story.
If we fail this zone then I really think the situation could become quite dire, dropping to 6k for example would invalidate a lot of bounce set ups and I think people would panic.