Overview

A temporary low is in place at 170.74 and intraday bias is turned neutral. Some consolidations would be seen but the outlook will remain bearish for the moment. A fall from 195.86 is seen as a medium-term correction pattern and is expected to target next long-term Fibonacci level at 165.67 later. The break of the 174.86 support affirmed that case of medium-term topping at 195.86 on the bearish divergence condition in the weekly MACD. The fall from 196.85 is currently viewed as a correction and would first target 38.2% retracement of 116.83 to 195.86 at 165.67. We asses the depth of correction based on reactions to 165.67 and the structure of the decline. A break of 180.36 will bring a rebound but we expect the strong resistance to limit the upside and bring another fall to extend the corrective pattern.

Daily Pivots: (S1) 170.56; (P) 172.15; (R1) 173.56