VIEW RETAINED: TRADING AT PIVOTAL LEVELS.
The overall view of the downside off L* to M** has materialised and the general view is retained. The index is testing pivotal N/M* cluster support.
Two alternatives might unfold:
Alternative 1: The preferred view (red illustration) is for further downside through M* to S3 and Q. This will be followed by 1,2,3,4,5 gains to R2 and beyond.
Alternative 2: An alternative outcome would be that the LM* wedge pattern has a final upward leg E, before the expected downside to S3 can occur. (perforated illustration). The medium-term outcome is the same.
M* is the pivotal level and R0* is the upside activation.
Target and Re-assessment Levels:
Important Levels: M* and R0
Primary Trend: Bear trend to S3, followed by impulsive gains to R2 and beyond.
Prevailing Trend: R0*/M* ranging
Monthly Range: R0/S1
Technical Rating: Medium
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