Weekly candle seems bullish but registered a lower high and low.Closed above the extended pink neckline.Stochastics is in the extreme oversold zone and showing signs of turning up which could give rise to some pullback.Needs to close above the minor top of 1335 to gather some momentum.Key resistance at 1312 and support at 1240 as shown on the falling wedge below.
The breakout from the falling wedge shown on daily charts was not very convincing.The S&P500 resisted at the 38.2% retracement level indicating the downtrend may continue. The 200 dema resistance too needs to be crossed. Initial bullish signs of the 5/10 dema cross giving a buy and close above the 50 dema and the resistance line of the falling wedge are encouraging.This needs to be followed up by taking out resistance at 1335-1345-1363 to gather momentum.
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