It did really look like the index had decisively violated the key recent-low of 1,505 pts when it gave up another 9.5 pts last Friday following the 32.08-pt retracement the day before. Surprisingly, the index bounced back by slightly more than 10 pts on Monday, which basically recouped all the losses recorded last Friday.
Anyhow, the index ended the session at the 1,505 pt-level. The breakdown at this level previously caused us to shift our near-term view towards the market to neutral. This is because the breakdown at the 1,505 pt-level created a lower high at the same time. That said, the index was also trading at below the uptrend line then.
The surprise comeback on Monday may save the market from retracing towards the next strong support situated at the 1,474 pt-level. Meanwhile, we maintain our Neutral view towards the nearterm market. Having created a lower high, this is still a possibility that the index may start creating a downward channel and eventually retrace to the next key low of 1,474 pts.
From the current level, there is immediate support at the 1,500 pt-level, followed by the 1,474 ptlevel. To the upside, the 1,505 pt-level is the immediate resistance. We will see if the index can return back above the 1,505 pt-level on strong upward momentum while the next resistance is seen at the 1,524-1,536-pt area.
Anyhow, the index ended the session at the 1,505 pt-level. The breakdown at this level previously caused us to shift our near-term view towards the market to neutral. This is because the breakdown at the 1,505 pt-level created a lower high at the same time. That said, the index was also trading at below the uptrend line then.
The surprise comeback on Monday may save the market from retracing towards the next strong support situated at the 1,474 pt-level. Meanwhile, we maintain our Neutral view towards the nearterm market. Having created a lower high, this is still a possibility that the index may start creating a downward channel and eventually retrace to the next key low of 1,474 pts.
From the current level, there is immediate support at the 1,500 pt-level, followed by the 1,474 ptlevel. To the upside, the 1,505 pt-level is the immediate resistance. We will see if the index can return back above the 1,505 pt-level on strong upward momentum while the next resistance is seen at the 1,524-1,536-pt area.
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