After the market tried to rally and stalled into 50% resistance ($6,764), the pattern painted a bullish correction in an overall bearish market picture.
The price touched the 50% retracement level last week and found selling interest. As price moved higher the ADX, which measures trend momentum, slipped lower. A weakening trend as price rises is a divergence to say price should stall out. So far this is happening and selling interest should continue this week. The resistance zone of the 50%, the 61.8%, and the red trend line price levels should hold any rally attempts.
Look for the primary bearish trend to persist.
Weekly S/R
Critical Resistance: $6,921.40
Key Resistance: $6,764.60
Key Support: $6,596.61
Critical Support: $6,100.00
The price touched the 50% retracement level last week and found selling interest. As price moved higher the ADX, which measures trend momentum, slipped lower. A weakening trend as price rises is a divergence to say price should stall out. So far this is happening and selling interest should continue this week. The resistance zone of the 50%, the 61.8%, and the red trend line price levels should hold any rally attempts.
Look for the primary bearish trend to persist.
Weekly S/R
Critical Resistance: $6,921.40
Key Resistance: $6,764.60
Key Support: $6,596.61
Critical Support: $6,100.00