After the FOMC yesterday, the market took a massive drop from the price of 34780. Although, we missed the initial move down, we are looking forward towards the further downwards support level priced at 34100. We are waiting for the retest at the resistance level of 34330, which was earlier a support level. We still have a little move downwards pending towards our target area.

The ascending trendline has broken out for sells earlier and the validation has been complete. Therefore, the descending trendline might or might not retest the price action at the resistance level. Its all dependent on the fact that the market respects it.

There is no retracement confirmation on this setup as the market can easily drop from the resistance level.

EMA 50 is still bearish and the curve is heavily bended downwards. We do not anticipate any retest at the resistance level which may form a confluence.

RSI is at 33. It needs to be neutralized at the level of 50. At this level, market needs to be aligned with the technical factors.

Massive drop on DJ30

Sep 21 2023