07 Apr Weekly Technical Analysis

The rally from 43200 continued to 37150 level this weekend. But support ever since 2011 December at 37500 held. Price took heavy blows on Tuesday and Wednesday and lost some 1116 points but at the end of the week on Friday recovered 634 points. On weekly basis is lost only 432 points, which was 1.07 %. Analysts and traders comment that move was due to rapid hits of stop loss as price moved across major support levels.

Friday's recovery doesn't rule out the threat of further downside loss, but support at 37500 level somewhat contained further loss for now. Weaker than expected job data from U.S. might have helped the price propel on Friday as the thought that the way economic data were getting stronger indicating consistency in recovery might have been reconsidered by the players in the market.

Looking at Daily Chart, the price is trading in this declining channel. Long as the price is contained within this channel the view remains Bearish. Any price movement in upside direction should only be corrective for further downside move. Indication of reversal of recent fall might have been given by the candle on Thursday and strong move after than on Friday.

So for now, the price is at 38073, we have support at 37300, immediate resistance at 38200 level break of which may test 38700 and probably 39000 once again.

Trade Safe :)