8-Hour Analysis:
Big Picture: The bullish power-play was maintained throughout the weekend and is still in play. The bulls are off to a better start this week, preparing themselves for another short-squeeze higher. The price’s transformation of recaptured levels into good supports is encouraging additional aggressiveness. Price, on the other hand, is poised to reach a short-term resistance zone, demanding active risk management for long holdings.
On the Upside Price is approaching the resistance zone of 26,940 and 27,125. These levels will be difficult for the bulls to break, but if they do, the upside is expected to expand into the 27,400 to 27,450 levels, where the 50% Fibonacci retracement is situated. In general, price faces a handful of resistances between 27,125 to 27,815 levels.
On the Downside a strong level is visible at 26,820. If this level is converted into a support, the short squeeze should be extended even further. Bulls are likely to work in favor of establishing this level as a solid support line during the session. However, below this level, the next supports are at 26,680 followed by 26,550 to 26,220 levels.
