4-Hour Analysis:
Big Picture: Following the initial impulsive surge to the higher levels, the price is now in a sideways consolidation pattern. Price attempted a breakthrough in the previous session, but despite solid volumes and intensity, bulls were unable to hold the breakout, resulting in a quick profit-taking that pushed the price back down. Despite the bulls’ current strength, further volatility is expected in the near term as profit-taking continues on any offered strength.
On the Upside price eventually tested the 52,800 level, which was very much in the pipeline. Although for a brief period, the bulls attempted a follow-on over this level but were unsuccessful. For the session, the primary resistance level is 52,420, followed by 52,800. Bulls still need strength over 52,800 to push for a prolonged upside into 53,400, followed by channel resistance at 53,600 level.
On the Downside a partial base has begun to take shape between 51,600 to 51,250 levels. This area has been able to create some solid rebounds in recent days, particularly at higher volumes. This demonstrates that new entrants are still seeking for some dips. However, on the contrary, this will now be a critical support zone, as any breakdowns below this range may soon push price down into the 50,250 to 49,850 range.
