The price has already broken the trend line on our chart for 17th December 2012, with another break below on 20th December 2015. There was a retest of that level on 21st December 2015 and then a slight consolidation.
Yesterday’s price closed low which makes us believe in more of bearish move, but it is more tricky because it was a reversed candle which means we will be very careful with our positions.
On a shorter note, we expect price to be bullish: i.e. to go once again to retest 180.317 which was broken on the 20th December and tested the following day before a minor consolidation.
After the retest, there will be a free flow of price movement towards 175.022 on a medium range. By the way, that is just for non aggressive traders, an aggressive trader can just go ahead and sell short for today without waiting for any second retest and put a stop loss above108.317.
Any attempt for the price to break 175.022, which was the low of 10th of April 2014, then the next major support will be 169.951: i.e. the low of 10th October 2014 which is on a longer term.
In the meantime, if the price breaks 180.317 to the upside, then we will take a pause and watch market’s next reaction before we take our next move.
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