THE PRICE PATH MIGHT HAVE TWO ALTERNATIVES.
The PQ declining channel pattern is developing, which is bearish in nature.
However, the index remains above key support (see the dotted black trendline through the bottoms.)
The long-term trend remains bearish as well as the index is trading below its 200-day simple moving average.
Alternative 1: The price action might break below 65 900 and will trigger further downside potential. The price action might re-test the lower range of the declining channel pattern as 60 900, from where corrective waves 1, 2, 3 etc will unfold.
Alternative 2: The price action might re-test the key support around 65 900 and bounce back to its 200-day simple moving average and initiate the breakup out of the declining channel. Re-testing the break-out level might trigger the corrective wave 3.
Target and Re-assessment levels:
Important Level/s: 65 900 and 71 750.
Primary Trend: downside to 65 900.
Prevailing Trend: 65 900 to 71 750 ranging
Monthly Range: 60 900 to 67 940.
Technical Rating: Medium, with some alternative outcomes.