Updating our technical overview for the previous published report of August 12, we see how the index succeeded in achieving the completing steps for the bearish pattern. Not only that, but also it breached the neckline followed by a re-test at 10245 and after that it head downwards, influenced by the aforesaid pattern.
Our captured pattern is supported by stabilizing below SMA 100, suggesting that additional bearishness could be underway over short term basis. The technical objectives resides around 9915 and 9820 but we might witness some kind of fluctuation as momentum indicators are presently showing overbought signs and we expect this fluctuation to continue around 10100 and 10200 to gather the momentum it needs to be able to reach the above mentioned targets. Note that this bearish wave that started at 10681.00 should be seen as resumption for the medium term bearish wave that stopped temporarily for achieving some correctional movements as the index couldn’t stabilize above 61.8% Fibonacci for the entire descend from 11205 to the bottom of 9507. Consequently, we should put into consideration that 9500 levels could be revisited over the upcoming period.
Yasir MubarakSenior Technical Analystwww.email@example.com