1-Day Analysis:
Big Picture: For the last few sessions, the short-term bullish momentum has performed admirably. As lower range held, the price was likely to return towards the range highs. It is about to retest the June low, and in order to maintain the current momentum, the price must reclaim this level. Failure to do so would slow down the momentum and keep prices fluctuating between 17,635 and 15,590.
On the Upside the leading dynamic EMAs of 25 and 32 are currently being tested or are about to be tested. This will be a significant level of resistance. Furthermore, these EMAs nearly coincide with the daily resistance level of 17,635 (the previous low in June). Price must re-establish strength above this level in order to access the upper range band levels.
On the Downside multiple minor intra-day supports have been established. Initially at 17,050, then 16,980. The next supports are located between 16,800 and 16,700. These are critical intra-day supports that must hold in order to prevent greater rounds of profit-taking. If price falls below these supports, it will be exposed lower into the 16,550 region and may even pull deeper into the 16,395 to 16,230 range levels.
