Price at time of publication: 8380. The index is in a high bullish momentum phase, while trading in an overbought range. Traders should consider this a short to medium term countertrend trade idea where the reward-to-risk is starting to favour sellers. My preference is horizontal trend lines however, it may be worthwhile recognizing the diagonal channels, where the upper boundary could soon act as a short-term resistance range. These are the key technical drivers: (1) The price is overextended vs medium term moving averages; (2) Current Short Term Technical Rating: Overbought; (3) Current Medium Term Technical Rating: Overbought; (4) The steep price trend is at risk of correcting, further supporting the potential for a countertrend sell. As always, traders could consider the following if/when the share approaches the target: bank/take profit, partially scale out, adjust the stop-loss to protect profits. Time Stop: Thursday, 08 August 2024.
TRADING LEVELS:
Entry: above 8430
Target: 8180
Stop-loss: 8545
TRADING LEVELS:
Entry: above 8430
Target: 8180
Stop-loss: 8545