4-Hour Analysis:
Big Picture: The slightest of concern turned into reality. A severe rejection of the EMA-200 was observed, which triggered profit-taking and drove the price towards the breakout-based support. When the price fell below the breakout support, the profit-taking event turned into panic selling. This sell-off has pushed the price back inside the range. Expect volatility to continue, with a probable retest of 28,800-28,400.
On the Upside Initial resistance has been found in the 30,000-30,250 range. After that, we have resistance at 30,600-30,850. A stronghold over this level may invite a re-test of 31,850 and the EMA-200. Remember that both of these resistance levels must be broken for any bullish continuation into higher levels. In the event of a breakthrough, the next target zone is 32,850, followed by 33,750, and finally 35,000.
On the Downside the price is now seeking support from the trendline. Although there is a slim possibility that this level of support will last very long. As a result, stronger supports are seen lower around 28,750-28,400. Breaking through these supports is expected to push the price down towards 27,475 and possibly as low as 26,700.
