1-Day Analysis:
Big Picture: Price is once again closing in on previously untested lower supports. To establish any local bottom formations, a significant reaction in favor of bulls is required. Previously, the higher time-frame demand zone held on to the fall, causing a partial rebound. Price is once again penetrating this zone; if bulls can hold off this demand level, we could see stronger short-coverings followed by a recovery. Furthermore current rejection came of EMA-12. Overall, price has struggled against the combination of quicker EMAs of 12 and 22, while EMA 32 has remained a major rejection hurdle in this bearish rally. Expecting slow grind for the sessions.
On the Upside the initial resistance level has now fallen to 19,800, which is also the previous all-time high. The next level of resistance is seen at 20,500-20,700. This level has gained significance overnight, as the EMA-50 is now operating at 20,700. As a result, recovering this level will be a positive sign for the bulls. Above that, the critical level is 21,350-21,500. Price must get acceptability above this level for moving on to 22,200, then 22,800. While a stronghold, a minimum two-day close above 22,800 is expected to trigger the second phase of the corrective cycle, which would first target 23,750, then 24,400, and eventually 25,000.
On the Downside Losing 20,050 was an intra-day setback for bulls, exposing price to lower support of 19,050-18,950. This is where we have seen the lowest daily candle closure, so this level remains a good support; nevertheless, failure to do so might extend the downside towards 18,630, followed by 18,050-17,950 levels. Furthermore, while holding recent lows would be ideal for building a double bottom formation, failure to do so would result in further fall towards 17,300 and eventually into 15,850.
