After last week's sharp drop, I conclude that further losses are to be expected.
1Q will stay below 33147.26 and close the gap at 31082.57.
Early June may be time to turn bullish again with a target of 36722.60 to exit the yellow B.
If this view works, then driving the yellow C would be a trader's dream.
On the downside, MA200 should be reached and this should serve as support for bullish reversals.
Annotation:
There are more dramatic variations as well, particularly if MA 200 should be exited with a weekly close down, but for now I've settled on that variation.
1Q will stay below 33147.26 and close the gap at 31082.57.
Early June may be time to turn bullish again with a target of 36722.60 to exit the yellow B.
If this view works, then driving the yellow C would be a trader's dream.
On the downside, MA200 should be reached and this should serve as support for bullish reversals.
Annotation:
There are more dramatic variations as well, particularly if MA 200 should be exited with a weekly close down, but for now I've settled on that variation.