BULLISH CORRECTION VERSUS BEARISH TREND AND THE IMPLICATIONS FOR FUTURE MOVEMENTS.
The long-held view of an A,B,C bullish correction of S4 has tested and reversed off the R1 target level.
The preferred longer-term view remains for a 1,2,3,4,5-bear trend to S2, as illustrated. The downside will be confirmed on a break of S0*.
The fact that phase C was 1.618 x phase A, suggests, however, that the bull trend could be impulsive with further upside to R2.
The bullish alternative will become more plausible if the market can hold above S0* over time (perforated arrow).
A medium-term neutral stance between R1* and S0* seems appropriate at this stage with the preferred outlook of a downward break.
Target and Re-assessment Levels:
Important Levels: R1* and S0*
Primary Trend and Target Levels: Downside to S2
Prevailing Trend and Target Levels: R1*/S0* ranging
Technical Rating: Neutral to Bearish
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