Market tested that key area and bounced sharply. Although the could not complete as per expectations, market reacted near 1:1 level (10013) shown in the above post and the cautious approach on side worked quite well in protecting us.
Current Scenario: Suppose the current move takes the market above 10330 level or above the red downtrend line. I that case, I would expect the market to retest previous highs (10490). If that happens, I would look for a pattern which completes near those highs @ 10510. So I would look for a scenario in this case (Caution: the failed may quickly take us to 10620-10650).
As the 25 days cycle (+/- few days) is approaching (see following post) I am excited to see the reaction near 20th December. Therefore, If market make a near that date I will be careful b'coz a sharp move might follow.
Bearish Scenario: Although we are in a bull market we might consolidate a bit more. What if market could not breach 10330 but breaks 10141 on the downside, I would expect 9950 level (right at the red uptrend line) and then look for a bounce.
Trade safe, stay healthy.
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May be the buyers will show interest at the lower levels at 10280, where today's gap fills and then the up move continues.
Although it's difficult to predict the markets next move yet bias is on the upside.
Only thing I can say is that bears had nice control today, and continuation on the downside may take us to 10320 which would be an important level now.
Today's candle has been a continuation of yesterday's downmove, means bears had control.
10410 could be a halt in the current downmove. However, the butterfly first Target of 10320 still remains intact.
Short term bearish stance is still valid, unless market surprises us with a strong gapup beyond 10500 :)
Although we saw buying at the lower levels yet If this downmove continues the next level to watch will be the same 10320 zone, which is the butterflies first Target.