- Bullish scenario: Buys above 18,050 with TP: 18100, TP2: 18150, and TP3: 18200, with S.L. below 18000 or at least 1% of account capital. Apply trailing stop.
Bearish scenario after bullish retracement: Sells below 18200 with TP1: 18100 TP2: 18050, TP3: 18000, and TP4: 17840 with S.L. above 18262 or at least 1% of account capital.
Scenario from the H4 chart:
The index is in a bearish correction, with the last relevant resistance level at 18379.88 on April 4th, and the key support at 17872.08. This implies that as long as the resistance is not broken, the index remains in correction or rather in consolidation as it has been all week, with the extension of the bearish correction after breaking the support at 17872.08.
Although today's sales reached yesterday's uncovered POC at 18035, a bullish reaction can be expected at least towards the weekly opening at 18175.87 and 18200 more extensively as selling zones that will be defended by the bears for a new bearish reversal, as long as they are not broken upwards.
The bullish reversal of the index above the indicated selling zones will confirm the strength of the bulls whose next targets are located at Friday's sales POC at 18328.84 and, after its break, to expand purchases towards the POC located above the key resistance at 18386.98 and 18434.63.
The current bearish correction will extend with the decisive break of yesterday's buying POC at 18035, opening the way for more sales towards the week's supports between 17890 and 17922 and the key range minimum at 17872.08.
*Uncovered POC: POC = Point of Control: It is the level or zone where the highest volume concentration occurred. If there was previously a bearish movement from it, it is considered a selling zone and forms a resistance zone. Conversely, if there was previously a bullish impulse, it is considered a buying zone, usually located at lows, thus forming support zones.
Disclosure
This analysis does not constitute investment advice or an offer to engage in financial transactions. Although every investment involves risks, trading forex and other leveraged assets can involve significant losses. A thorough understanding of the risks is recommended before investing.
