An insider's look at the current markets
And after touching the support of this upside channel, it seems that the index has started a bullish trend towards the resistance of the main upside channel, which is located at 3700.
Nevertheless, several negative factors could stop the index for achieving its targets, where the Stochastic index is showing negative signals that might pressure the index and force it to fluctuate around the SMA 50, which meets the 38.2% Fibonacci level that turned into support after being breached recently.
Also, a pivotal horizontal resistance level located at 3035 represents an obstacle for the index, although it could also provide positive momentum for the index to reach its targets, since it represents a neckline for an upside technical model, which has targets that extends to the 4000 level.
We support the bullish scenario, since the support provided by the SMA 50 in addition to trading within the main upside channel make us believe that the index has a strong chance of breaching the aforementioned neckline and activate its positive targets.
We should also note that the short term trend depends on the index’s movement between the support at 2675 and the resistance at 3035.