The index exited the bullish medium term channel which started from the recorded bottom at 3587.00. Currently trading stabilized below the breached support which turned into resistance at 6235.00 which is the gateway for the index to resume the bullishness.
The index set four consecutive daily closings below the 100 Days MA adding further confirmations for the downside move within the bearish correction formation for the main upside wave from the aforesaid bottom.
Supporting our expectations is a bearish formation with the neckline at 23.6% correction at 5700.00, where breaching this level confirms the downside move initially targeting 5295.00 the 38.2% correction.
We see that this level will push the index higher in correction to retest the breached neckline before resuming the downside move targeting 4645.00.
Momentum indicators are in oversold areas which might increase the fluctuations and volatility pushing the index towards the 100 MA currently around 6000.00 before resuming the suggested scenario.
Nonetheless, we should note that breaching 6000.00-6025.00 will delay the expected bearishness, while as mentioned above, breaching 6235.00 will carry the index into the upside move again ignoring the need for the bearish correction.
