Bias: This looks bearish but I feel losses are likely to be choppy
Gains were seen as expected on Friday which stalled within the 143.11-43 area. Losses from here appear to be a little too deep to expect a recovery and thus we should be cautious with any bullish stance. There is support in the 140.72-141.04 area and I feel this should provide a correction higher only. Thus only back above 142.12 and 142.56 would cause a retest to the 143.21-35 area. This resistance needs to break to maintain any bullish momentum for 144.09 at least. Also note resistance at 144.97.
With the peak in the 143.11-43 area I feel the main risk is back lower. There is a small risk that we could see a correction as high as the 142.12area. But while this broad resistance holds we can still see losses. Any direct loss of 140.72 would extend losses to the 129.70-74 area again. I still feel this would hold for a pullback higher. Thus only below 129.70 would see 139.04-17 at least.
6th October: The inability to keep hold of gains is worrying and any loss of 139.74 followed by 137.91 would actually appears to imply losses all the way down to the 130.50-00 area…
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