One more daily closing has been witnessed below 61.8% despite the strong attempt to start a recovery as expected yesterday to relieve momentum indicator.
We remain bearish on Dow, aiming to see it flirts with 76.4% Fibonacci according to Fibonacci trading rules.
On the upside, yesterday’s high at 16400.00 should hold to protect bears over intraday basis.
- Support: 16100.00-16000.00-15855.00
- Resistance: 16250.00-16320.00-16460.00
- Direction: Bearish
Despite achieving a daily closing above 76.4% Fibonacci, but the index has formed a long upper shadow over daily studies as seen on the provided daily chart.
Still, struggle is seen around this important Fibonacci level and thus, we will be patient and we may use sell stop entries today to make sure that, the index will continue to fall after failing to stabilize above 1920.00-1925.00 resistance zones.
To conclude, we remain bearish on SP as far as 1932.00 –cluster resistance- holds, while 1937.00 is the key for trend shift.
- Support: 1880.00-1872.00-1850.00
- Resistance: 1905.00-1915.00-1932.00
- Direction: Bearish