After exiting the main descending channel for an upside correction, the move ended at 38.2% Fibonacci at 83.35; failure to breach this level forced the index to reverse to the downside to continue the general bearishness which temporarily ended for correction. 
After trading was restricted between 38.2% and 23.6% correction the index formed a bearish pattern with the neckline at 82.10 which resides with 200 Days MA. The breach was seen with confirmations of daily closings below this level activating the bearish pattern and extending the short term bearishness. The pattern targets areas from 81.20 –which was acquired yesterday- then full targets at 80.65. Momentum indicators are providing overbought signals forcing the index into volatility with an upside bias to unload the negative momentum before resuming the bearishness over medium term basis targeting 80.50. We should highlight two key factors, first is the breach of 82.10 which weakens the expected bearishness, and second is breaching 83.35 which will support the reversal of the medium term trend to the upside targeting 85.40.
By: Yasir Mubarak
Senior Technical Analyst
[email protected]
www.ecpulse.com