4-Hour Analysis:
Big Picture: Bulls continue to struggle against psychological resistance. Price has challenged this level three times since losing it in mid-July, and each time a similar severe rejection has been observed. Every time a long upper shadow candle has developed, it indicates that there is heavy selling pressure above. As a result, despite major bullish happenings on higher time frame, price is still unable to break through this level, thereby blocking out any major trending move.
On the Upside price has been unable to maintain its strength above the resistance levels of 29,800 to 30,000. These are strong resistances with psychological significance as well. Three attempts to overcome this resistance have been attempted in the previous two weeks, resulting in no substantial advances. The session’s initially resistance is back at 29,525 points.
On the Downside the EMA-200 failed to emerge as a firm support level. However, the EMA-50 is presently acting as a superior support. This is the session’s primary level of support. Below this, there are supports ranging from 29,010 to 28,940, with major supports ranging from 28,850 to 28,650. The support levels of 28,850 to 28,650 have been quite tough for sellers, as the price reacts just as strongly on these levels as it does on psychological barriers.
