8-Hour Analysis:
Big Picture: Bulls had gained some partial momentum after the last round of selling, although that corrective squeeze was mostly driven by the news event, which effortlessly dissipated and price is virtually back to weekly levels. The weekly supports are anticipated to come under additional pressure. If these weekly levels can survive the selling pressure, a similar squeeze upward is still feasible; but, if these supports are breached, another wave of selling is likely.
On the Upside the prior squeeze induced by panic short-covering was stopped by EMA-100 and the horizontal resistance. Furthermore, the bulls’ inability to establish any sort of resilience at the immediate support level shows that fresh buying was weak. The previous anticipated support levels will now be seen as resistances during the session. The session’s initial resistance is at 26,350 to 26,550 levels, followed by 26,940 to 27,125 levels.
On the Downside Lower intraday supports between 25,840 and 25,800 have temporarily stopped the sell-off. However, if there are any major selling inflows through the session, these supports are likely to lose their hold and expose price back to the weekly supports. The weekly supports between 25,250 to 24,850 remain the most critical levels for the session. Furthermore, these supports also cover the 50% Fibonacci retracement levels of the March’s rally.
