Equity Indices Weekly (22 Apr ’17)
A short-term bounce is possible, as oversold daily studies unwind. Weakening momentum studies and the bearish Tension Indicator should limit scope.
In the coming weeks, further downside tests are looked for, as investors adopt a cautious stance. A break below 7093.57 will target psychological support at 7000 and the 6972.20 Fibonacci retracement. Still lower is the 6860 Fibonacci retracement.
Resistance is lowered to the 7255.78 break level from 27 March, and should cap any immediate bounce as investor sentiment weakens. If broken, however, focus will turn back to critical resistance at the 7447 high of March. An unexpected break above here would delay lower levels, but should find difficulty clearing the 7500/11 barrier as background readings also begin to turn down.
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