Analyst thoughts: Top 40 index
VIEW RETAINED: THE BLUE PQ TRIANGLE PATTERN IS PART OF THE PRIMARY BULL TREND
The illustrated view of a PQ consolidation, followed by the eventual return of the primary bull trend to T1 and beyond, is retained.
The expected upside off S0/Q to P is in the latter stages of forming phase D. The final phase E to S0 and Q should be activated on a breach of R0.
Triangle patterns are complex and can have shortened legs and even interim trend line breaches. Current market action is typical of these types of patterns.
R1* and S1* are the pivotal levels to allow for ad hoc moves.
Target and re-assessment levels
Important levels: R1* and S1*
Primary trend: PQ ranging, followed by gains to T1*
Prevailing trend: Downside off P to S0
Monthly range: P/S0
Technical rating: Medium