After the index breached the support for the medium term upside wave on April 27, while confirming the breach with several retest attempts, the index rushed to the downside correcting the entire upside move that started from the recorded bottom at 2464.00 towards the top at 4146.00.
Till now the index was not capable of breaching the 50% correction at 3305.00 and to consolidate below it, restricting the pair sideways between 50% and 23.6% Fibonacci correction, as the latter turned into resistance following successful breach.
The 50 MA is adding negative pressure on the index and accordingly further downside correction is likely over the coming period.
Assessing the secondary image, we can see a bearish pattern under preparation, where exiting the short term upside move with the breach of its support assures that the patter is still forming, where it will be completed by reaching 3325.00 followed by upside reversal towards 3480.00 -38.2% correction for the last downside move which started from the top of the proposed bearish pattern- then the index will resume the downside move targeting the proposed neckline for the pattern which will aid the index in breaching the 61.8% Fibonacci correction at 3105.00.
Therefore, we expect further bearishness over short term basis which remains within the downside correction formation for the main upside wave mentioned.
The main target for the downside move resides around 3105.00, though we should observe the index around this level as breaching it extends the medium term bearishness while its stability will take the index to the previously breached upside wave on April 27.
