Index opened on a weak note and tested its weekly channel top of 40500 +/- 100 points as predicted (link here) at week's opening.
Once rejected from weekly channel top, index maintained a see-saw momentum through out the day while continuing to slip downwards. This is a signature behavior of correction wave and nothing strange. Market eventually closed at 39800 +/- 100 which was Week 48 critical resistance turned into support as per our previously published chart. Volumes remained strong which signals healthy accumulation behavior of investors and offsets fears of index going bearish once again.
Once rejected from weekly channel top, index maintained a see-saw momentum through out the day while continuing to slip downwards. This is a signature behavior of correction wave and nothing strange. Market eventually closed at 39800 +/- 100 which was Week 48 critical resistance turned into support as per our previously published chart. Volumes remained strong which signals healthy accumulation behavior of investors and offsets fears of index going bearish once again.
Looking forward, we expect the index to find support in the range of 39200-38600-38000 and open gateway to fresh value investing.
Wishing you a very happy and profitable trading ahead!
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