4-Hour Analysis:Big Picture: Yesterday’s session saw an extremely volatile session in which sellers began the session strong by keeping price under pressure and dragging it towards support levels. However, in the final hours of the session, bulls came in hard and dragged price beyond session opening and were able to close the day at almost session high. The volatility still remains high as an immediate rejection from the previous range highs is seen.
On the Upside Yesterday, the price nearly broke through all resistances ranging from 29,525 to 30,000. The rally, however, failed to establish any sustainability above the prior range low level, resulting in profit-taking. Price formed a high volume shooting star candlestick pattern near the critical resistance zone, indicating that buyers used the strength to unload holdings. Shooting stars, especially on critical resistance levels, frequently indicate a trend reversal. Bulls must regain the prior range lows and build a stronghold above them in order to offset this negative development.
On the Downside the 4-hourly EMA-50 will serve as the initial support level. After 8 trading sessions, this EMA was regained. If price can convert this level into a sustained support level, another push towards the previous range lows is likely. If the price fails to maintain this level, the drop is likely to continue, initially towards 29,125, 29,010 and towards 28,940. This is where the price is anticipated to find some support, while any breach of this zone gets price back towards the 28,850 to 28,650 range.
