First chart shows the much talked about resistance level of 5600 and the bearish engulfing formed on Friday at this level.
Next chart shows the possibility of an inverted head and shoulders pattern. But price should not decline more than 5420 - 5430 level for a valid right shoulder to form.
For bulls price should stay above 20 day moving average which will keep the bullishness intact and they might try to move towards the 50 DMA.
Price is not able to sustain above 38.2% Fib level and the weekly chart shows price rejection from 20 Week moving average.
So from the above scenarios we are in a kind of neutral area from were we can move both ways.
Playing long will be easy on a daily close above 5600.
Try to stay short below 20 DMA But be cautious with shorts as global markets have sold off and are in oversold territory. So for bears the weakness and the bad fundamental news of global markets should continue.
