The bulls would have been glad to see follow-through buying yesterday after the more than 10-pt rebound off Monday’s low. The “Long Lower Shadow Line” was confirmed by yesterday’s more than 10-pt rebound off Monday’s day-low.
Following the creation of the bullish reversal signal, there is a possibility that the index will start trending sideways for a while before looking for its next direction. Yesterday’s market action was at least in line with this possibility.
Nevertheless, the “Lower Shadow Line” has not written off the possibility of the market creating a downtrend channel. We have drawn the potential downtrend channel in the above daily chart but it will take a while for the market to confirm it.
While watching if the index is in the midst of creating of a downtrend channel, we are sticking to our Neutral view. Moreover, the market has violated the uptrend line which had previously supported an uptrending market for more than 6 months.
From the current level, immediate support is now situated at the 1,500 psychological mark, followed by the 1,490 pt-level and the 1,472 pt-level. To the upside, we are eyeing the 1,524-1,536-pt area as the immediate resistance.
Following the creation of the bullish reversal signal, there is a possibility that the index will start trending sideways for a while before looking for its next direction. Yesterday’s market action was at least in line with this possibility.
Nevertheless, the “Lower Shadow Line” has not written off the possibility of the market creating a downtrend channel. We have drawn the potential downtrend channel in the above daily chart but it will take a while for the market to confirm it.
While watching if the index is in the midst of creating of a downtrend channel, we are sticking to our Neutral view. Moreover, the market has violated the uptrend line which had previously supported an uptrending market for more than 6 months.
From the current level, immediate support is now situated at the 1,500 psychological mark, followed by the 1,490 pt-level and the 1,472 pt-level. To the upside, we are eyeing the 1,524-1,536-pt area as the immediate resistance.
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