- Price closed the week at the lows. Price broke crucial support zone of 175.
- Daily time frame is also staying well below 200 SMA.
- Daily is likely to give the death cross soon with 50 SMA moving below 200 SMA.
- Any bounce towards these moving averages are likely to face stiff resistance from bears.
- Hourly bearish momentum will stay intact below ichimoku cloud.
- Gold had a bearish descending triangle and a Rounding top pattern. Both were bearish patterns but Gold decided to move in favour of bulls.
- But this up move may find resistance both in Daily and weekly time frame. Resistance in daily is around 1365 and Week shows possible move up to 1377 levels. Bigger moves only if these levels are crossed on closing basis.
- First chart is the hope of bulls to replicate the recent visit of price below 200 SMA. As one can see price did not do much below 200 SMA for bears.
- But bulls will understand the Gravity of the situation when they see the second chart. From 2008 there has been 3 sell signals in Month MACD, We are about to witness the 4th sell signal. All the previous signals gave great results for bears.
- But as always in stock market nothing is certain, Let the 4th signal fail to save small long term investors from big losses....
- If a bounce has to come it has to come from here. Its a confluence of support zone and 200 Day SMA. But on the other hand bears need a daily close below this zone to gain more strength.
- ES One hour chart shows the bounce But price is still below the cloud. As long as price stay below the cloud Bears will be safe to resume correction.
- Daily candle is showing the Long bullish shadow. But will it end like this or a bearish candle by the time day closes.
- Bear flag in 4 hour chart continues to bleed.
- Daily time frame chart shows price falling towards 200 SMA
- With this momentum price is likely to test 200 SMA before a major bounce could happen.
- Bounce was resisted near 2750 zone.
- second chart shows the steady breakdown or a trending down swing in 4 hour time frame.
- Last chart shows possible support zone.
