Weekly Review
This week we saw a great deal of bearish sentiment with an open of 459.73 down to a low open of 445.56. The Hourly chart is showing that this is just the beginning of the bearish momentum and that we should expect that there may be a slight pullback to the 450 level.
What we are seeing on the Daily chart is still a bullish trend however price has broken through the 200 period WMA and is also in a bearish channel at time of writing. We haven’t seen a break of the 200 period WMA since the beginning of the pandemic so this may be a precursor of further downward movement, if at least something to keep our eye on.
The following week will be potentially choppy for intra as well as day trades, I fear that the market will be sideways touching close to the 450 price point but not following a trend upwards or down. If this holds true then the week following the next would possibly be a much more fruitful trading week for short term moves. Longer term position holders, especially those which have been a buy and hold may want to keep an eye out for a reversal of the recent bearish sentiment but keep in mind that this could be the end of the previous rally.