4-Hour Analysis:
Big Picture: As important levels are approaching volatility is gradually starting to increase. It will continue to get volatile as we close into the major resistance levels of 44,400-45,500. This levels remains to be a very strong resistance that has triggered aggressive selling whenever test. Now more to add we have EMA-200 Daily at 44,600 level that will be making this zone even more difficult. Hence profit-taking on the upsides would be a sensible strategy.
On Upside the initial resistance level is 42,550, followed by 43,000. The day’s major resistance, meanwhile, is seen at 43,580. To open up more upside, price must break through this resistance. The next key levels would be 44,400-44,690, followed by the 45,500 barrier. On the daily time scale, these are important resistances and breakout levels, so expect aggressive profit-taking around these levels. Above them, a breakout opens 46,500, followed by 48,000.
On the Downside, first intraday support of 42,000 remains unchanged. This level has been holding as support for the past few hours. The next level of support, though, is at 41,200. Both are great intra-day supports. If these levels are violated, the next crucial intra-day support levels are 40,400 and 39,650. Expecting 39,650 to act as bottom for the day, However if breached then we have 38,800 followed by 37,550 as next support levels.
