Weakness to overcome resistance at 81.40-50 will eventually bring the index back to its support levels at 80.40. This weakness sign makes us prefer short positions at current levels with 81.50 as a stop reverse. Short-term support is found at 80.60-40 and this is the first area we could see the decline pause.
The short-term trend is down. If prices fall below 81 we will see a move downwards towards at least 80.85-70. If the decline pauses near 80.70 we will consider buying as the upward move from 80.15 looks impulsive. So we either sell short with stop and reverse at 81.50 or wait to see how the decline unfolds. Possible buy level is 80.70. If prices break below 80.55, we could see a move towards 80.25.
The daily chart shows how prices got rejected again at 81.50. Last time, prices got rejected at this level with the index falling towards 80.15. So will we witness the same thing now? 81.50 is important resistance level as we have said for so much time now. Take this into accountRespect it. Sell short and reverse above it.
