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This morning's rally was short-lived, and we may well have witnessed what was realistically a dead-cat bounce; particularly since the pivotal 8000 level has once again given way to downside.
With the daily price action trading below the 50 and 100 day moving averages (DMA), as well as the 38.2% Fibonacci retracement of the mid-November rally to the highs of May, the bias remains rather bearish.
In order to remain in the uptrend seen since June of last year, I would like to see the 200 DMA hold fast at 7755, which coincides with the 50% retracement and rising support from those June 2012 lows.
The hourly chart shows that the price has been in a bearish channel since 28 May. Today’s early morning rally comes from the RSI rising from the oversold area below 30, and the support comes from the bottom of the channel.
This is most certainly a case for selling the rallies.