4-Hour Analysis:
Big Picture: Over the weekend, price movement remained compact between the immediate S/R levels. Despite having the opportunity, the bulls were unable to capitalize on it to push prices higher. This has resulted in slight profit-taking, pushing the price nearly back to its support levels. Over the previous several sessions, the range has shrunk even further, indicating that an expansion is possible. As a result, active risk management is recommended.
On the Upside all upwards attempts were blocked by the resistance at 27,415 in combination with the EMA-200. This will now be a significant intra-day barrier for price to breach in order for it to advance towards the falling trendline resistance. The trendline resistance has also been challenged four times so far, with each test resulting in a sell-off. If price hits this zone again, it will be significant since a break above it might unleash aggressive bulls, even if just on the short term.
On the Downside the price has almost returned to the immediate short-term support levels of 26,650 to 26,530. Another quick reaction has been noted, preventing the price from falling further. This support will continue to be important for the session. As holding it would reduce any downside risk, however, losing it would swiftly re-expose price to the lower support, initially towards the recent low around 25,990, with potential for additional downside open.
