Reasons in order of significance:-
Retest of major down trendline
7062 is strong resistance line ( 0.38 fib)
sloping diagonal trendline resistance
completion of 4th corrective wave in a potential 5 wave sequence.
Divergence on RSI (1HR) should materialise at 7062
I expect an ABC correction, difficult to say how low the correction will go but I expect it to take place for at least 3 week, I would wait for capitulation before going long.
Fundamentals
China , Germany, Japan and UK economies all weakening/contracting, USA GDP data released on Weds 6th Feb.
Retest of major down trendline
7062 is strong resistance line ( 0.38 fib)
sloping diagonal trendline resistance
completion of 4th corrective wave in a potential 5 wave sequence.
Divergence on RSI (1HR) should materialise at 7062
I expect an ABC correction, difficult to say how low the correction will go but I expect it to take place for at least 3 week, I would wait for capitulation before going long.
Fundamentals
China , Germany, Japan and UK economies all weakening/contracting, USA GDP data released on Weds 6th Feb.
Comment:
Shame, looks like it will reverse at 7222, probably tomorrow.