In the previous analysis, it was noted that the market might remain subdued within a sideways zone. Despite this, there hasn't been any bullish indication in current levels, with prices closing below the sideways range of 22737 / 22676. Let's examine potential price movements for different opening scenarios on Friday, May 3rd, 2024:
Gap Up Opening:
If prices open with a gap up above 22700, they may face rejection around 22737 - 22740 before dropping back. Breaking 22676 could initiate a downward move to complete an ABC structure, potentially reaching 22564-22542.
On the other hand, if prices sustain and trade above 22740 in the first hour, a buying trade could target 22809 – 22841. Any breakout from this range would drive prices to the next levels in that direction.
Flat Opening:
Should prices open flat, wait for them to settle for an hour. If they sustain and close above 22720 in the first hour, a buying trade targeting 22809-22841 could be considered with a stop loss at the day's low.
Conversely, if prices fail to sustain and close below 22660, they might drop to 22564 – 22542. If prices trade below 22542, they could descend to the best buying zone of 22498 – 22477.
Gap Down Opening below 22600:
Prices might find support near 22564 – 22542 initially. Further, if prices trade below 22530, they could drop to the best buying zone of 22498 - 22477, where a buying trade could be considered with a 20-30 point stop loss.
Conclusion and Disclaimer:
Traders should look for buy opportunities at support levels or upon breaking resistance levels mentioned in the analysis. Short-side trades can be initiated at resistance levels with a stop loss of 100 points or upon failing support levels.
Disclaimer: Trading involves risks and it's important to do your own research and consider your risk tolerance before making any trading decisions. The provided analysis is for informational purposes only and should not be construed as investment advice.
Gap Up Opening:
If prices open with a gap up above 22700, they may face rejection around 22737 - 22740 before dropping back. Breaking 22676 could initiate a downward move to complete an ABC structure, potentially reaching 22564-22542.
On the other hand, if prices sustain and trade above 22740 in the first hour, a buying trade could target 22809 – 22841. Any breakout from this range would drive prices to the next levels in that direction.
Flat Opening:
Should prices open flat, wait for them to settle for an hour. If they sustain and close above 22720 in the first hour, a buying trade targeting 22809-22841 could be considered with a stop loss at the day's low.
Conversely, if prices fail to sustain and close below 22660, they might drop to 22564 – 22542. If prices trade below 22542, they could descend to the best buying zone of 22498 – 22477.
Gap Down Opening below 22600:
Prices might find support near 22564 – 22542 initially. Further, if prices trade below 22530, they could drop to the best buying zone of 22498 - 22477, where a buying trade could be considered with a 20-30 point stop loss.
Conclusion and Disclaimer:
Traders should look for buy opportunities at support levels or upon breaking resistance levels mentioned in the analysis. Short-side trades can be initiated at resistance levels with a stop loss of 100 points or upon failing support levels.
Disclaimer: Trading involves risks and it's important to do your own research and consider your risk tolerance before making any trading decisions. The provided analysis is for informational purposes only and should not be construed as investment advice.