I'm a keen tech student of the SPI. Here is my analysis on the...

I'm a keen tech student of the SPI. Here is my analysis on the way this is playing out. Chart displayed is the daily chart of the AUS200 CFD on the C-trader platform.
Volatility is still huge but slowing down.Price is consolidating but still under the influence of the bearish control candle. The directional line represents short term market bias. The high of the lowest closing candle is illustrated on the chart. If price closes above that line and the 5333 level, the bias will flip to up, bulls will take control and we have a valid text book up side down head and shoulders pattern which should then target the upper trend line around that 61.8 fib level.

On the flip side while price remains below it the bears are in control. I anticipate price to retest the 4800 and then 4400 levels. At present the 23.6 fib level is being well respected. The market is still working out which direction it wants to go.

A gap down open on Monday with an hourly close below the Friday low of 5037 will open the flood gates towards 4800 as there is no chart support on the way down. A gap up open may retest the previous intra day resistance levels at 5170 and then 5280 respectively.

Market likes to move to liquidity pockets aka the stops, so we'll see how it plays out. Happy trading all.