ST trend: neutral
On Friday we were noting that the ST trend was down with bottoming attempt. Buyers did manage to hold those unconfirmed lows on FGSI and pushed higher into the cash open, before grinding and giving up some of those gains in the 2nd part of the session.
The o/n from Sunday and today saw buyers stepping in again and pushing prices back to the 4420 area. That zone has been a brick wall of resistance so far, price being rejected every time it got there. Today same thing happened with price dropping abruptly fro mthere right into an ML test. What happens from here is important for the near term. ML is key for the trend, as we keep repeating. Buyers would want to see ML holding and pushing back above danny and 400bar MA to put in a successful ML test. If danny or 400bar MA reject price, then another attack on ML is likely, while an ML breakdown would put sellers in the lead. We do have an unconfirmed high on FGSI at the recent o/n high, so a bigger turn could shape up from here, but it depends on whether ML can be broken on a sustained basis or not.