After the upside correction ended at the 61.8% correction, the index negatively pressured the support for the medium ascending channel which started from the trough recorded at 665.75, where the index managed to breach the support and consolidate below it.
The index faced strong resistance at the beginning of the week at 50% Fibonacci around 1124.00 and reversed to the downside, where it presented the formation of a bearish Head & Shoulders pattern over daily basis as provided on the chart above.
The 100 Days MA is strong resistance against the upside movement for the index, alongside negative signals from Stochastic, opening the way towards the neckline for the pattern around 1040.00.
We see potential downside movement over short term basis, where the index will be capable of breaching the neckline for the proposed bearish pattern heading towards 1016.00 followed by a retest for the neckline and then continue the downside towards the targets which start from 932.00 and the at 881.00.
The secondary image above provides a secondary bearish pattern where its neckline was breached at 1104.00 which we see will support the index to move lower; on the other hand, we should note that breaching 1148.00 will weaken the proposed bearishness and might lead the index higher towards 1200.00 and then the towards the critical areas over medium term basis at 1232.65.