The index is trading steadily within the descending channel which is controlling the downside correction since the recorded temporary top over medium term basis at 23107. 
The index corrected so far 38.2% from the entire upside move that started from 11454 towards the mentioned top. After reaching the support for the channel which resides around the 38.2% Fibonacci correction, the index rushed to the upside to extend beyond the 50 Days MA towards the resistance at 22000 trading normally within the descending channel. Signs of a bullish pattern are seen in the middle of the channel with the neckline at 20995 which will push the index to the upside over short term basis targeting the resistance level at 22000. Momentum indicators provide negative signals which is why we expect some volatility and a slight downside bias to retest the 50 MA currently around 20000 before resuming the short term bullishness. Over daily basis we presented the breach of the correctional channel the returning to the medium term bullishness which we believe settled for the 38.2% correction. Though we should note that breaching 19700 might delay the expected upside move and drive the index towards the support levels for the descending channel which meets with the 38.2% correction at 18660.
By: Yasir Mubarak
Senior Technical Analyst
yasir.mubarak@ecpulse.com
www.ecpulse.com