This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
But this was not a new buy signal. The outlook is ongoing poorly. There are too many resistances on the way north. One of them is the psychological price level at 10,000. This is the technical target price for a further countermovement.
Below the lower trend line of the downward trend channel at 9,530 the mentioned lows could be tested again. Afterwards we see another support at 9,000. This is the lower limit of a former trading zone.
The old and well-known trend following indicator, the 40 weeks weighted moving average (WMA), has been turning down significantly. This is a further sign of potential price losses.