The 8H chart might present a buying opportunity if the index stays above the descending green support and the ascending interim yellow support.
Upside targets for such a commitment are found at the uptrend line at 35.800 as we speak, followed by a potential to reach the ATH at 37.000. If that is accomplished, we still have two more targets to work with: the ascending resistance close to 38-39k and finally, the green secular resistance above the 40k, a potential +22% gain.
Any yellow ascending uptrend lines could be used to trail stops and protect against downside risk. And if the market hurdles the blue uptrend line, this could also be used as a less aggressive angle to trail a stop.
Conversely, a good place for bears to get positioned is any downside break below the descending green support, currently at 33.000. Provisional downside targets are 29.500 (the first horizontal support), followed by the green channel’s lower border currently in the 27.000s, and finally, the blue ascending support close to the 25k. This ultimate target would accomplish a -30% correction from the ATH, and would be considered a normal correction within a major bull market.
Upside targets for such a commitment are found at the uptrend line at 35.800 as we speak, followed by a potential to reach the ATH at 37.000. If that is accomplished, we still have two more targets to work with: the ascending resistance close to 38-39k and finally, the green secular resistance above the 40k, a potential +22% gain.
Any yellow ascending uptrend lines could be used to trail stops and protect against downside risk. And if the market hurdles the blue uptrend line, this could also be used as a less aggressive angle to trail a stop.
Conversely, a good place for bears to get positioned is any downside break below the descending green support, currently at 33.000. Provisional downside targets are 29.500 (the first horizontal support), followed by the green channel’s lower border currently in the 27.000s, and finally, the blue ascending support close to the 25k. This ultimate target would accomplish a -30% correction from the ATH, and would be considered a normal correction within a major bull market.
