Mid-term Bears close out for Profit Taking (1)

Multi-year trend line support has provided good buying opportunities since the August 2015 decline. The 78.6 Fib, 200 period weekly moving average and trendline support now in play at (1). Short term sentiment amongst small participants is approx 68% bearish , which usually serves as a good indicator when turning points are approaching. Watch for buying pressure to pick up around these current levels (19000/ 40 ) for a bounce off triple support (1) which could initiate the start of a new uptrend. Alternatively, if we break below this support zone and close below the 200 SMA on the weekly time frame, we could expect to see a re-test of the July ‘19 lows (18250/80s) over the coming weeks.