1-Day Analysis:
Big Picture: The last several sessions were extremely volatile, and this volatility continued throughout the weekend. The initial challenge on the 25,200 level had previously encountered significant rejection, causing an enormous profit-taking event. Buyers, on the other hand, were able to transform the 23,800 level into support, which not only stopped the selling pressure but also drove prices back towards the top of the range. Price has been consolidating below this range since then, although momentum is now beginning to slowdown. Bulls require a clear break above this range to re-initiate a move into higher levels.
On the Upside even after multiple attempts on the range high, no candle could close above or even inside the congestion zone of 24,680 to 25,200 levels. These levels continue to provide significant resistance to the price. Unless and until a clear break above this level is produced, the upside will remain constrained. Hence, buyers would need a solid break above this level to target higher levels, initially into 26,050 followed by 26,700. Any weak breakouts above this zone, on the other hand, may result in intra-day profit-taking.
On the Downside 23,750 has been added as a strong support. The amount of 23,750 has been added as a solid support. The current session is forming a hammer formation around this level of support. This indicates that there is fresh demand inflow upon testing lower levels. This is a good sign for the bulls, but it won’t make much of a difference unless the range highs are taken out with strength. Below this level, the next supports are at 23,400, 22,800, and 22,300.
