In the last review, I have argued in favor of 'corrective rally' saying that " the recent fall from 4.6k is a part of overall "recovery" attempts rather than fresh fall; On the upside close above 4375 is required to add strength in the recovery attempt; whereas stop is placed near 0.618% fib level".
However, today's break of 0.618% retracement level is "significant" development and has jeopardize the interest of bulls, completely. On the weekly charts, the lower end of the parallel channel is the next price level to watch i.e. 3.6k. Whereas on the daily charts, the expanding shape will continue to have negative implication for the index, as long as it remains below 4.3k.
In short the "trend" is still down in absence of 1) Trading above crucial level of 4325 2) Break of 0.618% Fib level. On the downside I am open for 'anything' in the medium term & 3.6k in the extreme short term, provided we remain below 4.3k.
In short the "trend" is still down in absence of 1) Trading above crucial level of 4325 2) Break of 0.618% Fib level. On the downside I am open for 'anything' in the medium term & 3.6k in the extreme short term, provided we remain below 4.3k.
