Broken out of the channel formation to the downside.
A mild correction has been posted from yesterday’s low, this is seen as a retest of the breakout level.
The candle on the 4 hour chart is negative for sentiment.
Negative overnight flows lead to an expectation of a weaker open this morning.
Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 7500, resulting in improved risk/reward.
Target 1: 7160
Target 2: 7000