Big Picture: Yesterday’s session managed to see some improved momentum as price climbed above a major resistance level. This was an important challenge for the bulls to clear in order to acquire an edge over the trend and witness a breakthrough. If price can hold well above the breakthrough levels, the upside and momentum remain strong.
On the Upside the important S/R level has been flipped for the first time since early January, and if this momentum continues, the upside is expected to expand towards 45,125 levels, followed by 46,600 and towards 61.8% Fibonacci retracement at 48,250 level. The relative strength index is showing a solid bounce, indicating a bullish comeback. However, for this momentum to continue, bulls must establish a stronghold above the 43,850 mark.
On the Downside price must remain above the breakout levels; otherwise, a possible deviation may occur, resulting in some reasonable intra-day profit-taking. The session’s key support comes from the breakout levels of 43,750 to 43,545 levels. Holding these levels on breakout re-tests would keep bulls under control; however, if this range is lost, momentum may diminish, resulting in heavier profit-taking back into the 42,880 zone, followed by 42,270.