Since November last year, the index has been in an upward channel and has been moving alternately between the resistance line and the support line.
In early January, the price bounced off the support line at 29915 and rose sharply. The strength of growth was enough to break through the resistance line at point 30869. And for the last few days, the price has been moving above the line. However, it is already clear that it began to fall and is now exactly on the line at point 30909. I expect the price to continue falling and return to the line.
The reason for this is the resistance line formed in September 2020 and older, that is, it is stronger than the support line. The price has not yet managed to make a serious breakout of this line. And the fact that this time, after the breakout, the price almost immediately returned back suggests that this breakout is false.
I expect the price to return below the resistance line and fall to the next support line - 30096.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
I hope your are right!! I didn't expect the Early Jan breakout, I have been waiting for the correction.. Fundamentals are very weak, for some reason market is discounting every bad news and decide to move on..