It seems that Monday’s rebound could be just a dead cat bounce. Prices continue to trade in a declining trend and we are seeing the potential formation of a head and shoulder (H&S) pattern. Looking at the chart, the 1,474 support level is a level of significance, as it is also the neckline support of this H&S formation. Breaking below this level is bearish and would likely drag prices towards its 200-day SMA at 1,442. On the upside, we think any rebound would likely cap at 1,511-1,528, its 30-day and 50-day SMAs respectively.
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