Hello Traders,
after 4 advancing days in a row, N50 touched the range of the 0.618 Fibonacci of the decline from 12427-11614 @ 12117and advanced to 12160 on Thursday, declined yesterday to the downside, closing the day at 12098, intraday low @ 12073.95, and leaves a „bearish-engulfing“ pattern at chart. A/d-ratio was flat and TRIN closed at 0.47 what indicates more bullish traders as bearish in normal times!
The „bearish-engulfing“ is a reversal candle that normally „promise“ 3-5 days of declining price!
If so to come, the targets are ranging from 11952-11823. A decline into that area would be a „typical retracement“ after this advance and keep the bullish view at hand!
A close below the 0.786 Fibonacci @ 11731 on a daily closing price will open the door to lower price still if selling pressure followed this move a day after or two.
The hourly view shows the following (left hand) chart:
If the move from 11614 to the upside was all of it, the next move is to the downside, giving new lows in the coming days or so.
If this was just wave „a“ of (b) a sharp and brief retracement would be next, after that N50 will push to the upside, making new high`s at the end or early next week and may finish a „flat“-pattern.
But if the high at 12427 was a wave „5“ of higher degree, we have just seen a wave „1“ to the downside with more bearish potential in the coming days and weeks ahead!
Have a great weekend...
Feel free to ask or comment.
Trading this analysis is at your own risk!
after 4 advancing days in a row, N50 touched the range of the 0.618 Fibonacci of the decline from 12427-11614 @ 12117and advanced to 12160 on Thursday, declined yesterday to the downside, closing the day at 12098, intraday low @ 12073.95, and leaves a „bearish-engulfing“ pattern at chart. A/d-ratio was flat and TRIN closed at 0.47 what indicates more bullish traders as bearish in normal times!
The „bearish-engulfing“ is a reversal candle that normally „promise“ 3-5 days of declining price!
If so to come, the targets are ranging from 11952-11823. A decline into that area would be a „typical retracement“ after this advance and keep the bullish view at hand!
A close below the 0.786 Fibonacci @ 11731 on a daily closing price will open the door to lower price still if selling pressure followed this move a day after or two.
The hourly view shows the following (left hand) chart:
If the move from 11614 to the upside was all of it, the next move is to the downside, giving new lows in the coming days or so.
If this was just wave „a“ of (b) a sharp and brief retracement would be next, after that N50 will push to the upside, making new high`s at the end or early next week and may finish a „flat“-pattern.
But if the high at 12427 was a wave „5“ of higher degree, we have just seen a wave „1“ to the downside with more bearish potential in the coming days and weeks ahead!
Have a great weekend...
Feel free to ask or comment.
Trading this analysis is at your own risk!