The monthly timeframe—still technically entrenched within a longer-term uptrend—is nearing support coming in at 4,102. Connecting with the aforementioned base would likely witness the monthly chart’s Relative Strength Index (RSI) connect with familiar indicator support between 40.00 and 50.00.
Together with the weekly timeframe’s downtrend, the index ended the week lower by -2.5% and removed bids at support from 4,177 (now marked resistance). Clearing the noted base technically uncovered the monthly support level mentioned above at 4,102. In addition, you will recall that the unit recently retested the underside of a breached weekly channel support (almost to the point), taken from the low of 3,491. You will also note that the RSI on the weekly chart is comfortably beneath its 50.00 centreline, indicating negative momentum (average losses exceeding average gains).
Moving over to the daily timeframe, recent price action, also showing a clear downtrend, is comfortably beneath the 200-day simple moving average at 4,240 after tunnelling through neighbouring support at 4,191 (now marked resistance). Engulfing the aforementioned barrier unearthed further downside towards support at 4,104, which made its entrance on Friday, situated a touch north of the monthly support at 4,102.
Considering the current chart studies, bears may have difficulty at current levels given we have monthly and daily support levels in play. Hence, this may trigger a bout of profit-taking this week, which could draw the index back to retest weekly resistance at 4,177.
Together with the weekly timeframe’s downtrend, the index ended the week lower by -2.5% and removed bids at support from 4,177 (now marked resistance). Clearing the noted base technically uncovered the monthly support level mentioned above at 4,102. In addition, you will recall that the unit recently retested the underside of a breached weekly channel support (almost to the point), taken from the low of 3,491. You will also note that the RSI on the weekly chart is comfortably beneath its 50.00 centreline, indicating negative momentum (average losses exceeding average gains).
Moving over to the daily timeframe, recent price action, also showing a clear downtrend, is comfortably beneath the 200-day simple moving average at 4,240 after tunnelling through neighbouring support at 4,191 (now marked resistance). Engulfing the aforementioned barrier unearthed further downside towards support at 4,104, which made its entrance on Friday, situated a touch north of the monthly support at 4,102.
Considering the current chart studies, bears may have difficulty at current levels given we have monthly and daily support levels in play. Hence, this may trigger a bout of profit-taking this week, which could draw the index back to retest weekly resistance at 4,177.