General overview for 27/06/2016:
The corrective structure of wave C is getting now clearer as it was before. The market is moving below the 55,100 and 200 DMA and even recently it gapped down to the level of 9400 points. This gap will be a very important technical resistance for bulls from now on. Nevertheless, the bearish view for this market anticipates another impulsive wave development to the downside with a potential target at the level of 7777 points. This downside wave is a part of an irregular flat correction, so it should develop in five impulsive sub-waves.
7777 – Target Projection For Wave C
8689 – Technical Support
9155 – Brexit Low
9075 – 10085 – GAP
10521 – Wave B Top
Swing traders should consider opening sell orders from current market levels with SL just above the GAP zone. The potential target should be set at the level of 8689 and then at 7777*.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.