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The current trade is all about momentum, with investors less concerned about buying dips while aggressively taking out offers. The steep rally which began on March 31 represents strength, but also vulnerability since support is well below the current price.
The short-term range is 6767.00 to 7089.00 with 6928.00 to 6890.00 the nearest support area. The intermediate range is 6353.25 to 7089.00. Its support zone is 6721.25 to 6634.25.
The 50-day moving average is at 6816.74 and the 200-day moving average is at 6808.40.
The retracement zones and the moving averages are well below the current price, which indicates when there is a correction, it’s going to be steep.
The momentum is too strong to try to pick a top, but if a closing price reversal top does form with a confirming follow-through, I wouldn’t ignore it.