Big Picture: Yesterday’s session began with selling pressure and progressed to challenge the EMA-200 level, which prompted intra-day profit-taking, recovering roughly entire session losses. Volatility is beginning to rise once more. Furthermore, with inflation figures to be reported today, volatile conditions are expected to prevail.
On the Upside 21,890 remained a strong resistance, preventing price from breaking through for another session. For the time being, this is a strong intra-day resistance, although key intra-day levels are at 22,300 and 22,800. These levels must be recovered once again to mark the completion of the corrective phase. Strength above them is required; failure to maintain these levels will cast shadows on further upside.
On the Downside the horizontal support level of 21,560 was maintained at the daily closing. This level is still an effective price support level. Furthermore, price tested the EMA-200 level during the intra-day session and had a positive reaction. This emphasizes the EMA-200’s strength and importance much more. Holding these supports a bit longer could trigger another wave of short-coverings, resulting in a price spike. Loss of this range, on the other hand, will push the price down, initially into 21,370 and 21,110, with more downside possibility open towards 20,655 to 20,400 levels.