8-Hour Analysis:
Big Picture: Despite having sufficient strength and momentum, bulls were unable to convincingly test or break through the range highs. The momentum slowed over the weekend, leading to some profit-taking on the eve of the session’s closing. Although a positive reaction has been observed from the lower supporting levels, the current conditions imply that sideways price activity may continue for some time before a definitive momentum emerges.
On the Upside resistance levels 43,165 and 43,285 have returned. Above these, the next barrier comes from the 43,415 level, which serves as both horizontal and trendline resistance. Price is anticipated to return to the 44,000 mark if strength exceeds above 43,415. Previously, price was unable to establish a stronghold above this level, prompting profit-taking; however, if bulls are able to show acceptance above 44,000, the upside is expected to expand into 44,480, followed by 44,700, and 45,650.
On the Downside price was shielded from the recent selling lower by the 8-hourly EMA-50 and the mid-range support level. As the price tested the lower supports, there was an increased volume surge, indicating that buyers were active once again as the dip was provided. The EMA-50 at 42,625 provides primary support for the session, with 42,450 serving as secondary support. As long as price can hold the 42,450 level, the downside is unlikely to extend.
