It is worth noting that this price action is occurring within the long term descending pattern indicated by the purple lines. As we are getting closer to the apex of this pattern, we are seeing a decrease in downside momentum which is usually an alert of an upcoming trend reversal.
How to trade this? Short term I would expect move up from here and hit the resistance line of the symmetrical triangle somewhere between 6350 and 6400. I will go long from 62XX to 6350-6400 as I believe this scenario is very likely to play out.
Longer term, whilst it is entirely possible we go lower to 56XX, given the decrease in downside momentum and the fact that the last two times (around 28/07 and 05/09) we hit the long term descending resistance we haven't fallen all the way to the bottom support of the ; I would give a bias to the situation. It is also worth noting that generally speaking (though not always!) towards the end of a descending ; we won't see the price go below the last touch point of the lower resistance line. This was on 24/06 at around 5760, so I don't really see us going lower than that. We also have the rising pink support line which is indicated by the higher lows of 24/06 and 13/08 which gives us an alternate low of around 6K. Given these two considerations it just doesn't make sense for us to go much lower than 5800. This in turn, invalidates the target of 5.6K for a downside break of the symmetrical triangle; meaning a break to the upside is more likely.
To confirm, I am long from 62XX to 6350-6400. I will add to my longs if we go lower. I will reassess once we reach this target, though I have a bias for a break to the upside of the symmetrical triangle. As we get close to the day a break occurs, I will reassess and adjust if necessary.