Big Picture: Yesterday’s price aggressiveness resulted in no big continuations higher, as bulls failed to drive price higher despite several attempts. Bulls are now restricted due to congestion over the 38,300 mark. The range is still in play going ahead, and price is expected to stay volatile as long as the range is intact. Furthermore, the monthly close is approaching, which could add to the volatility.
On the Upside there is significant congestion between the 38,000 to 38,400 levels. Several efforts have been made in the previous few days around these levels, but each attempt has resulted in almost immediate profit-taking. This indicates that there is some selling/profit-taking pressure above, which is also restraining the upside potential. Establishing stronghold above 38,400 is essential for price to expand higher.
On the Downside following several rejections from the congestion zone higher, the intra-day support range of 37,700 to 37,560 levels is under pressure. Though these levels are currently holding, however, further rejections higher are expected to overwhelm these supports, dragging price lower back towards the 4-hourly EMA-100, which is presently at 37,050.