Since the end of September, the index follows a strong uptrend, leading it to 2 important levels. The first one is the 3507 resistance, formed from market highs dated back in 2002 and 2007. The second one is the 3550 resistance, formed by more recent highs on Apr 13th, Jul 20th and August 6th. The convergence of both resistances increases their strength, meaning this is an important pivot zone for the index.
Today's question is 'Will the index current uptrend have enough strength to reach then go through these levels?'
It is still too early to answer this but with the RSI approaching the overbought zone and the momentum heading towards the 0 line with a slight divergence, now is not a good time to enter the market.
Long positions holders would keep them given the strength of the current uptrend and until clearer bearish signals appear.
Enter the market long if the index goes above the previously identified resistances.
A short term pullback would bring the index back to the 3372 support.
Today's question is 'Will the index current uptrend have enough strength to reach then go through these levels?'
It is still too early to answer this but with the RSI approaching the overbought zone and the momentum heading towards the 0 line with a slight divergence, now is not a good time to enter the market.
Long positions holders would keep them given the strength of the current uptrend and until clearer bearish signals appear.
Enter the market long if the index goes above the previously identified resistances.
A short term pullback would bring the index back to the 3372 support.