Support – 431.10, 420.80, 413.92
Resistance – 447.20 (50-DMA), 462.90, 468 (100-DMA)
Repeated failure at 200-DMA in second half of April followed by a break below 50-DMA yesterday indicates bears are on control and the prices could drop to 430-420 levels in days ahead.
- However, traders need to watch out for a possible rebound from anywhere between 430 to 420 levels. More so because hourly is oversold, while 4-hr is fast approaching oversold territory.
- Consequently, a rebound from range of 430-420 could end up in inverse head and shoulder formation with neckline at 476 levels.
- If the above action unfolds over the next week or so, the neckline would coincide with falling resistance as well.
- On the other hand, a break below 420 could spell trouble for bulls and expose 400 levels.