Reason for the trading strategy (technically):
We see price testing its resistance at 8360 (100% , 38.2% , horizontal overlap resistance) where we expect price to react off its, causing it to fall to its support at 6426 (horizontal swing low support). We do have to be cautious of the intermediate support at 7518 (horizontal pullback support).
(55, 5, 3) is approaching its resistance at 94% where we expect to see a corresponding reaction. We have also identified a divergence with price which contributes to our bias.