Looking at the chart the price has broken down through the range lows around $1688.00. A consolidation pattern formed under this level causing the price to fall again to a minor support at $1672.00. If the price is going to continue lower we would expect to see some lower lows and lower highs form.
This suggests we may see a short term pullback into the consolidation lows or into the higher time frame lows of $1714.00 and further 1729 recent resistance. A bearish rejection at these levels could invite the current sellers an opportunity to add to their positions.
- Buying pressure from 1620.00 resulted in prices rejecting the dip.
- We are assessed to be in a corrective mode lower.
- The 50% Fibonacci retracement is located at 1672.00 from 1614.00 to 1729.00.
- Support could prove difficult to breakdown.
- We therefore, prefer to fade into the dip with a tight stop in anticipation of a move back higher.
