1-Day Analysis:
Big Picture: Buyers stepped up once more yesterday, unleashing another round of gains as the FOMC event produced a favorable outcome. The session ended on a high note yesterday and is now facing some intraday profit-taking pressure. If the bulls can close over 23,840 at the end of the session, it will be another bullish trigger. However, the price may stay choppy and volatile as it nears the 25,200 mark.
On the Upside Price has recovered acceptance above the 23,360 barrier and is now challenging the 23,850 level. Both of these intra-day levels have remained extremely difficult for the bulls to breach and still require further strength to completely breach them. Once price breaks through them, it is expected to re-target the 24,200 level, followed by the 24,800 level, and eventually the 25,200 resistance level. There is strong congestion between 24,800 and 25,200 region.
On the Downside the intra-day support level of 23,360 is set to reappear. Previously, this level did not provide any substantial support; however, if the bulls are to maintain their momentum, this level must now be acknowledged as support. Holding this will almost surely favor the upside, while breaking it will expose price back to the EMA-250 support level. As long as this EMA support holds, the short-term trend will favor bulls; but, failure to do so may trigger a corrective phase with initial objectives of 21,890 to 21,550 levels with room for further downside.
