Major supports hold for now but maybe it is just the beginning?
Quite of a ride, we had for the past few days on stocks. Violent, rapid sell-off on all major global indices. SP500 broke the mid-term up trendline and went to test the long-term one. The first reaction is positive, we do have a small reversal. That is a good place to do that, along with the trendline, we do have a 38,2% Fibonacci there. As long as we stay above that area, this is still just a correction.
DAX broke the 12900 support and in theory, should aim the 11900 one. Currently, here we also see a reversal but as long as we stay below the orange area, the sentiment is negative.
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FTSE, like SP500, reached an important support and bounced higher. British Index tested the 7100points and created a nice bounce, which can be optimistic for the buyers. Breakout of this level can trigger a long-term sell signal so as long as we are above, the main trend is safe.
Bitcoin continues the sell-off started in the mid of December. The price reached an important support on the 6000 USD, which as for now, looks important only on the paper. We do not see any demand here whatsoever. Breakout should lead us to the 3500USD – price which in December seemed impossible.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis