With a strong bullish November, we saw price rise by 102 points. The momentum looked strong and
seemed as though it was set to continue through to the end of 2019 but the momentum has come to a halt for now.
Price has dropped sharply, falling 33 points on the first day in December and not that start of
the month we would have liked to see but what does this mean?
Nothing much just yet as this is merely just a pullback for now and nothing to worry about.
Looking at this Index on a smaller timeframe such as the 5 minute chart, this would appear
to be a very large decline. But looking at the daily timeframe we can see the uptrend is still
intact and price has not even moved below the previous low from the 20th November 2019 at $3,091.
The pattern of higher highs and higher lows is still present for now but we need to identify
possible areas of support that price may move down towards.
The first and most obvious level is the 20sma just below price.
If price falls lower then the 50sma, previous support level and the $3,000 round number are
clustered together and should provide a strong level of support.
Following that, we have the 200sma to cushion a further fall in price.
The December 2018 to May 2019 bull trend rose by 607 points. The current trend has risen
423 points so far, so we may see further moves to the upside if this one is going to surpass the prior trend.
Let us see how the market plays out from here on.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
seemed as though it was set to continue through to the end of 2019 but the momentum has come to a halt for now.
Price has dropped sharply, falling 33 points on the first day in December and not that start of
the month we would have liked to see but what does this mean?
Nothing much just yet as this is merely just a pullback for now and nothing to worry about.
Looking at this Index on a smaller timeframe such as the 5 minute chart, this would appear
to be a very large decline. But looking at the daily timeframe we can see the uptrend is still
intact and price has not even moved below the previous low from the 20th November 2019 at $3,091.
The pattern of higher highs and higher lows is still present for now but we need to identify
possible areas of support that price may move down towards.
The first and most obvious level is the 20sma just below price.
If price falls lower then the 50sma, previous support level and the $3,000 round number are
clustered together and should provide a strong level of support.
Following that, we have the 200sma to cushion a further fall in price.
The December 2018 to May 2019 bull trend rose by 607 points. The current trend has risen
423 points so far, so we may see further moves to the upside if this one is going to surpass the prior trend.
Let us see how the market plays out from here on.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
