THE VIEW IS RETAINED FOR AN INTRICATE PATTERN APPROACHING MATURITY, OFFERING TWO POTENTIAL OUTCOMES.
The RS declining channel pattern remains applicbale, which is bearish in nature.
However, the index remains above key support (see the dotted black trendline through the bottoms.)
The long-term trend remains bearish as the index is trading below its 200-day simple moving average at 68 432.
Alternative 1: The price action might break below 65 800 and will trigger further downside potential. The price action might re-test the lower range of the declining channel pattern as 60 900, from where corrective waves 1, 2, 3 etc will unfold.
Alternative 2: The price action might re-test the key support around 65 800 and bounce back to its 200-day simple moving average and initiate the breakup out of the declining channel. Re-testing the break-out level might trigger the corrective wave 3.
Target and Re-assessment levels:
Important Level/s: 65 800 and 68 800.
Primary Trend: Bear phase off 68 800 to 63 700, which is then followed by a bull trend to 75 000.
Prevailing Trend: Gains to 68 800.
Monthly Range: 65 800 to 68 800
Technical Rating: Medium to low.
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