Analysis from December 17 was very profitable. However declines without any correction reached much lower than I expected (black symbols at H4 chart). I wrote: “Current situation looks very bad for demand side. Upward movement which we saw this week was just a re-test of new resistance. It is likely that declines will become a further direction”, “The nearest support can be found at: 87.40, and another in the area 85.00”.
Downtrend is so strong that support at 85.00 didn’t stop declines even for one day. Currently lower limit of downtrend channel was tested and weak rebound may occur, however it shouldn’t reach higher than 84.70. Strong support is near 81.00 area and there should be a rebound. Price many times reacted at this level between 2010 – 2012. However if bulls strengthen first break above 85.00 level will be a first signal for a trend reversal.