I am focusing on the last leg down and the current price action behaviour as to what may be unfolding in the short term until the trading range that we have been in since August last year resolves itself in either direction.
The reaction that we had after the SC Rally had been the largest within the range which is bearish. That is the last leg down which started on the 4th of Jan.
The level shown as RESISTANCE at 5050 was tested 4 times there after and the price action as of this writing having another go at it. If we fail and see a new low over the coming days that would suggest further downward pressure and a breakdown. If on the other hand we succeed with a breakout and a follow through thereafter, that would suggest a potential retest of the RESISTANCE ZONE to BEAT of 5300-5400.
Compared to prior rally to the current one, we have already achieved a greater rally which may be seen as change of character ( see prior rally marked with Orange and compare it to current, again marked with orange).
The third scenario may be, another trading range in the short term between 4850 and 5050 levels (between SUPPORT and SHORT TERM RESISTANCE).
At a potential make or break level in other words.
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