1-Day Analysis:
Big Picture: Bulls returned with force after a sequence of positive developments. When acceptance over 22,800 was apparent, strong short-coverings combined with fresh buying resulted in another significant upward rise. Price consolidation below 22,300 remains a critical divergence that could fuel a breakthrough over the 25,200 barrier. However, in order to maintain this momentum and reach even higher levels, strength exceeding 25,200 is required. Any indications of weakness in this area could quickly evolve into a profit-taking event.
On the Upside crossing 22,800 signaled the completion of the corrective phase and initiated another bullish rise. Yesterday’s session was one of the most powerful measured sessions in recent weeks. Buyers have broken through a number of important resistance levels along the way and are now testing the crowded zone of 24,680 to 25,200 levels. These are significant resistance levels that have not been broken since August 2022. Any break over 25,200 can continue this rise towards 25,700, followed by 26,300, with opportunity for more upside. Furthermore, recovering the trendline resistance remains a favorable indication.
On the Downside multiple intra-day supports have re-emerged. Initial intra-day support is likely at 23,740 level. Following that, the next two supports are at 22,800 and 22,300. Maintaining price above 22,300 will help to keep this momentum going. However, this support should preferably not be broken, otherwise the momentum could subside and a fresh selling wave could emerge, aiming for the 20,650 to 20,410 levels.
