After the index settled below the breached support for the medium term bullishness, which stopped after the 61.8% correction for the entire downside move from 14266 till 6461 held steady, where we can see a bearish pattern has formed with the neckline at 9790.00.
The index rebounded off that level in the first attempt though the 200 Days MA was strong resistance against the upside move taking the index again to test the aforesaid neckline.
Stochastic provided bearish signals supporting the bearish formation, and accordingly we see that likelihood for the breach activating the pattern leading the index south targeting initially 8900.00.
We might witness volatility and upside corrections to retest the neckline before resuming the expected bearishness over short term basis.
Note that stability above 10300 – 10365 might weaken the possibility for acquiring the downside targets.
By: Yasir Mubarak
Main Technical Analyst