4-Hour Analysis:
Big Picture: Price initiated profit-taking after numerous failed attempts to break the intra-day range. Profit-taking is expected to trigger retests of lower support levels. Holding onto those supports successfully, followed by a strong bounce, would likely mark a partial bottom and push prices towards higher level resistances in the coming days. On the daily chart, we would want to see price re-capture the trailing EMAs 12 and 22.
On the Upside the initial intraday resistance level is currently at 20,500-20,700. Reclaiming this resistance again leads to a challenge of the EMA-50 at the 20,900 level. Above that, the key barrier is at 21,350-21,500. Price must establish acceptance above this level in order to advance to 22,200, then 22,800. While a stronghold, ideally a minimum two-day closing above 22,800 is likely to lead to the second phase of the corrective cycle, which would initially target 23,750, followed by 24,400, and eventually 25,000.
On the Downside the slide has been halted once more by supports at 20,050-19,850. Any hourly closure below 19,800, on the other hand, would open lower support levels around 19,350, followed by the 19,000 mark. These lower level supports are crucial re-test levels that must be held if a test occurs. Holding these supports will result in a much stronger and sustainable upsurge in the coming days.
