NOKSEK Corrects 50%. Where Next?
27th April 2017
I wrote on these pages in early March that NOKSEK was testing a key average. That average broke on a closing basis – confirming an earlier moving average break in RSI and turning our medium term bias for NOKSEK to negative on our Trend Table.
Prices moved lower, then rallied but the underlying bearish tone was confirmed when NOKSEK failed near the 13 week moving average rather than than the 21 week. Last week’s powerful decline confirmed that and selling pressure this week has taken the cross to the lowest levels traded since August and to a correction of half of the 2016 improvement.
Although NOKSEK has bounced from that point (our first downside target, 1.0244) prices are still tracking a declining weekly Keltner channel lower and we remain bearish.
1.0143 is the next focus for the market and that is likely to be followed by a deeper 62% pullback at 1.0065.
