The is also at 30.14, which indicates a over sold signal and we may see a bounce very soon. The potential reversal zone formed by pattern's 1.618 and 2 fib extension acts as a for the small caps 100 index.
Here are the 3 scenarios that could develop,
1) The index may take support from the trendline and go up. Sustaining this trendline could take it to, point B and maybe further until point D. This could shape up into a pattern.
2) The index may break the trendline and consolidate in the . Breaking the the and passing the pullback test would trigger a massive downfall up to 8600.
3) The index may break the trendline and take support from the and rise again above the trendline. The point B would be the profit booking point for longs.
Check the price action for some time, if the trendline breaks then wait for it to consolidate in the and rise or fall eventually. If it sustains above the trendline, you can expect the index to rise 6-12%.
The main levels for profit booking are 10300 and 10800. Strict stoploss at 9660.
As the pattern develops, we can analyze the index back again for any change in levels.
This is not invest advice, please consult your financial advisor before investing.
Many of the small caps rose very well from their supports as well. :)