On the daily chart, the index is trading in the upper Bollinger band. The price remains below the EMA130 and EMA65 that are directed down. The RSI failed its end of December resistance in the Bearish zone below 60 mark and falling. The Composite is about to test its longer MA.
On the 4-hour chart, the index is trading in the lower Bollinger band. The price remains just above the EMA130 and EMA65 that start turning up. The RSI is showing Bearish behavior but still remains in the Bullish zone above the 40 mark. The Composite turned down as it failed its MA’s.
Support levels: 4173.5 (short-term trendline), 4083.1 (February lows), 3990.6 (January lows).
Resistance levels: 4292.0 (local highs), 4302.7 (February highs), 4391.0 (September 2015 highs).
Short positions can be opened from the level of 4117.0 with the target at 3990.0 and stop-loss at 4180.0. Validity – 2-3 days.
Long positions can be opened from the level of 4303.0 with the target at 4390.0 and stop-loss at 4290.0. Validity – 2-3 days.