Let's Replug from the previous couple of Posts :
>>> Below is the Daily TF Chart from the March 16th post :
It observes a Gap area 7936-75 just below the pivot low of 7961 which may be the likely Target of this correction.
One of the conclusions in this Post was -
If it's a wave 4 correction and gives a time and price wise larger correction, then the Positional Targets can be 8370 and 7900 apprx.
The expected Correction continued time wise from March till June and retraced apprx 38% ( as shown in the Fibo chart of the Post ) with low made being 7940.
>>> This is May 31st Post when some Reversal signals began to appear:
Updated in comment section of the post :
1. Positive divergence in Weekly indicators.
2. Last whole week traded above 8300 and last 4 close above 200dma apprx.
3. Still 50 and 200dma also 20 and 50dma are bearishly aligned.
4. So multiple timeframe contra indications and Greece news keeping the markets choppy.
5. 200dma can be pivot to trade both sides. Bias long with 8200 on closing basis in short term.
6. Light position size till resolves.
Low made was 8195 in next trading session with bias Long 8200 on closing basis.
Now further :
A Bullish probability is likely ( depends on Greek News also ) . Please check the charts below for details -
Charts suggest Positional Long Bias holding 8400 on Closing basis ( 200dma and Pattern Neckline at 8380 apprx) . The likely Target of this move may be retest of pivot at 8845 and above it with some short term corrections which can be bought on dips.
Neutral Bias Below 8380 upto 8200.
Even in case of a Bearish Greek News, 8200 remains the level to watch on Closing basis (Hourly T/L support and Pattern validity here). We may get a new low below 7940 only if we break 8200 on Closing, then the likely Target would be in the range of 7500-7700.