4-Hour Analysis:
Big Picture: Bulls are experiencing some heat at the psychological resistance level. Yesterday, several efforts were made to overcome this level, but neither was successful, resulting in a significant intra-day profit-taking that sent the price back down. However, similar to the psychological barrier, the 61.8% Fibonacci retracement this time turned into solid support and not only withheld the selling but also triggering a significant surge back higher. In the short-run bulls retain the upper-hand and hold strength to break resistances as momentum takes shape.
On the Upside the psychological resistance retains the immediate resistance level. This level is proving to be a formidable obstacle for the bulls; nevertheless, breaking over it may once again put bulls in a comfortable position to approach higher resistance levels. However, to extend the upside stronghold over 50,000 remains essential above the psychological level, the next intraday resistance levels are 50,800, followed by 51,250 and 51,900. Meanwhile, 52,800 is a major resistance level that may lead to significant profit-taking.
On the Downside yesterday’s early supports failed, causing the price to fall into the 48,800 to 48,600 range before almost reaching the 61.8% Fibonacci level at 48,250. The volumes around these supports flowed strongly, indicating a change of hands as well as entry from dip buyers. These support levels will the primary support levels for the session. Price is unlikely to experience significant declines as long as the 48,250 support level holds.
