It looks like the index could be building a new floor at above the recent low of 1,517 pts. Meanwhile, it is still hard to tell which direction the market will be heading for the rest of the week. While the index has already violated the short-term uptrend line, its retracement so far from the recent peak of 1,565 pts is still only about 50% of the run-up from the 1,474 pt-level, which is considered healthy from our point of view.
As the index might be constructing a new base around here, we have identified a trading range for the market ranging from the 1,517 pt-level to the 1,544 pt-level. We believe that either a breakout or breakdown from either one of these two levels would indicate the market direction in the coming weeks.
Anyhow, the market’s near-term technical outlook has been straightforward enough for us to continue to maintain our bullish view, as long as the benchmark is trading at above the 1,474 pt-level.
Immediate support is still seen at last Wednesday’s low of 1,517 pts while the 1,500-pt psychological mark would be the next support. To the upside, there is immediate resistance at the 1,544 pt-level, followed by the 1,565 pt-level and the historic high of 1,577 pts.
As the index might be constructing a new base around here, we have identified a trading range for the market ranging from the 1,517 pt-level to the 1,544 pt-level. We believe that either a breakout or breakdown from either one of these two levels would indicate the market direction in the coming weeks.
Anyhow, the market’s near-term technical outlook has been straightforward enough for us to continue to maintain our bullish view, as long as the benchmark is trading at above the 1,474 pt-level.
Immediate support is still seen at last Wednesday’s low of 1,517 pts while the 1,500-pt psychological mark would be the next support. To the upside, there is immediate resistance at the 1,544 pt-level, followed by the 1,565 pt-level and the historic high of 1,577 pts.
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