Turned down from the record high at 41087 reach the 37000 level as the index unwind deep overbought weekly and monthly studies
Saw rally to fresh all-time high in Q1 to reach the channel resistance from the 2020 year low at 41087. This has since given way to pullback to reach the 37000 level as the index unwind deep overbought weekly and monthly studies.
Consolidation above the 37000 level should see bounce capped at the 40000 level to further pressure the downside later. Lower through the 37000 level will see room for deeper correction to the 36000 congestion. Below the latter will open up deeper pullback to the previous resistance zone just below the 34000 level at the 33850/33760 area which is expected to contain losses. Failure here, if seen, will open up deeper correction within the bull channel to the strong support at the 32000 level and extending to 30500 congestion area.
Corrective pullback is expected to give way to buying interest later and where break above the 40000 level will expose the 41087 high to retest. Clearance here will see potential for extension to target 42538, the 1.50 Fibonacci extension of the 2008/2018 rally.