The index is trading an ascending channel since mid year which represents the medium term bullish trend. Yet, since rebounding from the channel’s support on August 25, the index did not surpass the middle line for the channel returning to fluctuate around the support. 
We can see a bearish pattern formation with the neckline at 10395 as seen on the daily chart above, the index opened today below this level signaling the continuation of the pattern.
The index is trading below the 50 Days MA adding more negative pressure and accordingly we expect the index to attack the main channel’s support at 10315 and rebounding from there to retest the breached neckline before extending the bearishness over short term basis.
The expected bearishness is a correctional move for the medium term bullishness that started from 8525 till the recently recorded top at 10955; the targets for the expected downside wave start from 10030 -38.2% correction- and might expand further towards 9740 -50% correction-.
Momentum indicators are neutral and for that volatility and heavy fluctuation might be seen in order to gain more bearish momentum to support our expectations.
Note that stability of 10315 areas against the downside attempts and an upside reversal with a breach for 10495 keeps trading ideally within the current ascending channel and cancels the need for the expected downside correction.
By: Yasir Mubarak
Senior Technical Analyst
[email protected]
www.ecpulse.com