After the index exited the general upside wave in a downside correctional wave, the index continues to fluctuate within the newly established upside channel retesting the breached general support above. 
The index breached the support for the channel completing by it the formation of a bearish pattern shown on the secondary image above with the neckline at 6085.00; and after reaching the initial targets for the pattern, the index reversed higher to retest the critical support areas which turned into resistance at 6095.00. The mentioned resistance resides with the 100 Days MA which is adding further bearish pressure on the index and strength to the resistance in addition to Stochastic which entered overbought areas further aiding the strength of the resistance. Accordingly, we expect the index to continue its short term bearishness within the bearish formation which started after recording the top around 6385.00; targets start at 23.6% at 5726.00 and then far ahead at 5320.00; in spite of the negative signals our scenario remains valid as far as we did not witness a clear breach with daily closing above 6170.00.
By: Yasir Mubarak
Senior Technical Analyst
[email protected]
www.ecpulse.com