Failure to hold gains above the 3500/3450 support zone left a lower high at the 3700, May YTD high
Failure to hold gains above the 3500/3450 support zone left a lower high at the 3700, May YTD high. Losses from there see the February current year low at 3108 now at risk.
Break of the latter will see resumption of the bearish trend from the February 2021 year high at 5930 and see scope to target the 3000 psychological level. The deep oversold daily and weekly studies suggest reaction at the latter likely to give way to consolidation and unwind the stretched readings. Break of the latter, if seen, should see further losses likely to prove limited with strong support zone seen at 2021 and 2016 year lows at the 2935/2821 area.
Meanwhile, resistance is lowered to the 3400 level and this extends to 3500, the 2022 year low. Would need to regain the latter to turn the outlook positive and return focus to the 3700, May high. Break above the latter, if see, will open up stronger recovery to the 4000/4400 resistance zone.
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