timsk
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Dramatically Bearish
Tim.
Well, so much for last week's hypothesis about a triangle developing! As for the 6375 - 6425 support zone, such was the level of supply in the market that the index barely even acknowledged its existence. Last Monday's fall (6th Nov') created a triple bottom at 6425. The pullback on Tuesday - if one can describe it as such - was very weak, but enough to create the minimum reversal count of 3 bloo 'X's. The subsequent reversal on Wednesday resulted in a breach of the newly created triple bottom and a breach of the diagonal bloo bullish support line. Suffice to say, the P&F chart is now decidedly BEARISH with no immediate areas of support likely to halt the decline. It might ease up at around 6200 (the dotted red horizontal line) and, beneath that, the all important magic round number of 6000 (solid red horizontal line). As the chart stands, I'm struggling to find anything bullish to say about it at all. Time to start writing those sympathy cards?For the time being at least, the P&F chart remains BULLISH and would only switch to bearish if the short red horizontal line at the foot of the previous column of 3 red 'O's is breached. Should this happen, the index will find a wealth of support in the 6375 - 6425 zone. If it busts through that lot, it'll be time to sell everything, short everything and send cards of sympathy to LTBH investors.
Tim.