After breaching the support for the support rising wedge shown below, the index rose slightly to retest the breach but was faced by the 100 MA which is strong resistance over short term basis, confirming the breach for the rising wedge.
We see that the index is likely to move south over short term basis targeting areas from 2554 which represents the 38.2% correction for the entire upside move from 1760 towards the recorded top at 3043. Momentum indicators are signaling downside movement and buying saturation which supports our expected bearishness; yet on the other hand, breaching 2760 and stabilizing above it with daily closing weakens the expected downside move and might push the index towards 2900.
By: Yasir Mubarak
Senior Technical Analyst