8-Hour Analysis:
Big Picture: Yesterday’s session was dominated mostly by sellers. Price has been under pressure and was struggling to maintain its strength after testing the congestion zone. Furthermore, the 8-hourly bearish divergence indicated momentum weakness. Price has now entered the support zone, and if bulls can maintain this region, a re-test of the congestion zone is still possible. However, Price is expected to channel further lower to re-energize before trying the breakthrough in the event of continuous pressure.
On the Upside Resistance levels 26,940 and 27,125 have been reinstated. Above these intra-day barriers, the EMA-200 and EMA-250 levels occupy the next resistance zone. These EMAs have lately limited the current price spike. Surpassing these EMAs and the trendline resistance is critical for bulls to initiate a breakthrough towards 27,815 first, with potential for 28,300 and 28,850 thereafter.
On the Downside Price is now finding support in the 26,500 to 26,300 area. However, for the time being, the reaction is soft. Bulls must maintain this zone for a bit longer in order to push for some more aggressive rounds of short-coverings. As selling remains active once again, if this area is unable to hold against the selling, the price will have next supports at 26,220, followed by 25,880.
