The current structure of the market suggests a "buy the dip" or V-shaped recovery after the sell-offs on Friday and early Monday.

Technically, the index is at the upper end of its range, suggesting that buying pressure is firmly in place and could open the way for new gains. The targets are clear: if the upper limit of the range is broken, the 38% Fibonacci retracement at 18,585 points would be the 1st target.
The 50% Fibonacci retracement at 19,000 points would also seem a potential target level.

In terms of technical indicators, the RSI has broken its downtrend line. This is a sign of increasing buying power.

The volume profile also shows that the 19,000-point level has brought great enthusiasm among buyers and sellers.

On the other hand, a return to the lower end of the current range, followed by a break-out, would allow sellers to take control and take the index back to its long-term uptrend line.

Maxime Dominguez - Analyst for Activtrades


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