On the very short term basis, trend is down. It can be clearly seen through the 30mins chart above, where the downward trendline connects recent top at 4500, 4000 and about 3500.
However on the bigger picture, trend has yet to turn down. Therefore it is likely that price is looking for bottom, correcting or consolidating the recent uptrend. Note too that, price range is volatile, making a low risk trade difficult.
Nonetheless, there is two ways of looking at the latest move. First on the very short term downtrend, it should continue as long as the down trendline is not broken. The various support resistance lines are 3265, 3200 and 3100.
Second, looking at it as a correction of the uptrend; as such, waiting for cycle bottom for long swing entry. On that basis, the 3100 appears as a possible bottom as:
1) 30mins RSI is at its lowest since August,
2) 3100 was a previous resistance and turned support last Thursday with long positive candle,
3) could enter into a new cycle as it has been 32 days since early October bottom
However, it is also contingent on beanoil staying above 48 and better still above the 50 psychological level. Expect further selling if price trades below 3100.
The full repoport here
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