04-12-13
Technical Outlook:
Daily closing at 2,619 rests exactly on the 20 days SMA, we can see strong support from the long traders with higher than average volume at 21,563. Daily indicators are somehow provide contradicting view where –DI looking to cross +DI and MACD further diverge to -4.
Hourly closing below 20 SMA, the 2,600 round number supporting level was tested at the trading low of 2,605, -DI has cross above +DI hence the bearish trend is formed with reading of RSI slipped from 70 towards 40. We can later observe from 30 minutes chart where similar pattern was realized yet no sign of rebound from the indicators.
Trade Recommendation:
Risk-averse intraday traders are advised to take on conservative approach which to short if any breakout below 2,595 (stop loss - 2,630 target profit -2,560). However higher risk appetite intraday traders can catch the probability of rebound and long around 2,615 (stop loss - 2,595 target profit 2,635).
Overnight traders shall short around 2,595 (stop loss - 2,630 target profit -2,560) or long around 2,640 (stop loss – 2,600 target profit 2,680)
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