The recent bottom @ 26,795.90 level held dd. 16/8/2019 and already the market is showing a double-bottom pattern this month with it’s trend forecaster having a bearish truncated expanded ending diagonal pattern which means that a strong bullish trend reversal should be expected (shown by the ‘green’ buy signal).
We expect the new intermediate-term bullish reversal trend to find major resistance @ 33,546.70 target level which is where the index’s Nov-2018 contracting ending diagonal started.
Unfortunately last month’s expected strong bullish trend reversal did not occur thus the current bearish contracting ending diagonal pattern is not complete. Notwithstanding, it’s current sub-wave is forming an expanded flat pattern as far as support level @ 26,470.30 pts is not broken. Thus, based on this forecast – we expect a short-term bullish reversal towards min. 28,780 pts target resistance level.
26,470.30 pts support level was broken thus we can expect a further fall towards the next support level @ 25,927.70 pts.