1-Day Analysis:
Big Picture: The excessive selling on August 17th drove the oscillating indicators to the point where there was no room for the indicators to respond for the next few days. Furthermore, the selling was so severe that buyers refrained from making any short-term move despite having extremely oversold conditions. This has previously shown the bulls’ weakness, and they are likely to remain weak unless a substantial round of consolidation happens which would allow for the pressure absorption and create room for some countermoves.
On the Upside the levels of 26,220 and 26,390 are now restraining the bulls’ upward surge. Price is unlikely to see any aggressive short-covering unless it begins to hold above the 26,390 level. Overcoming the resistance of 26,390 would result in some intraday corrective upside for the price initially towards 26,600, followed by 27,125.
On the Downside the pair is still under heavy selling pressure. Price, on the other hand, has reacted to the weekly support levels and is currently accepting support. However, the weekly supports may continue to be under pressure in the coming days as bulls seek to absorb the remaining selling pressure. The weekly supports range from 25,280 to 24,830. Furthermore, for the time being, a short-term manipulation below these supports cannot be ruled out.
