1-Day Analysis:
Big Picture: The reaction remained strong throughout the session. The demand zone withheld the price from penetrating any lower and triggered an intra-day reversal. The price is now entering a volatile domain as we have demand below and supply above in form of trailing EMAs. Price testing the short-term quicker EMA-12 at 20,250. Price needs to reclaim this level on daily closing to further extend the upside. Failing to do so would just keep the price trapped unless one of the key levels breaks.
On the Upside bulls on the short term seized control over the 19,800 mark and gave it a good pump before getting denied at 20,450. Key resistance for the day, however, is indicated at 20,250 in the shape of the EMA-12 daily. Since last week, this EMA has repeatedly limited the upward movement. Additionally, the price has been trading below this EMA for the past 25 sessions, making it a crucial level to retake for any sustained uptrend on the daily time-frame. The next level of resistance after this is at 20,500–20,700 followed by 21,350–21,500.
On the Downside 19,800 is where initial support is found. Again, we have supports at 19,050 and 18,590 after that. The bears are being resisted by these vital supports. Therefore, holding these supports levels is crucial. Furthermore, any consecutive hourly close below 18,590 may trigger new selling pressure, sending prices first toward 17,300 and then towards 15,850.
