4-Hour Analysis:
Big Picture: 31,850, the key resistance level, once again rejects price. Multiple rejections triggered intra-day aggressive profit-taking, dragging the price back towards the range support levels. The range-bound situation persists, with the upper range now expanding towards 32,000. Going ahead, this range requires a catalyst for breakout, and with CPI data due later this week, price could potentially see range expansion.
On the Upside the first point of resistance is observed at 29950, followed by 30,650-30,800. If price can hold above these levels, another push towards the major resistance region is expected. The EMA-32’s daily resistance is indicated at 31,390. This EMA has now rejected price twice, resulting in a significant intra-day sell-off. However, multiple resistances exist between 31,520 and 32,000. Price would need to remain above these levels in order to move up to 32,765, 34,353, and possibly 35,000.
On the Downside the trendline provides early support at 29,250-29,100. The trendline appears to be a strong support level at the moment, but if broken, the 4-hour range lows of 28,750-28,250 are likely to be seen once more. This level has held as support for almost 25 days, making it a highly dependable support. However, because of this, there is still plenty of liquidity below this support, which might potentially serve as a price objective. Any swift break below this support, followed by a reversal, would be good for bulls. Furthermore, any strongholds below this level would expose us to 27,450, followed by 26,700.
