The local bourse shed -107.48 points or -1.57% yesterday, closing at 6,727.93. Indicators are bearish and still far from the oversold region. MACD histograms and DMIs are showing increasing selling pressure, despite momentum starting to go down. Average volatility is still picking up. On a purely technical basis, we expect the downtrend to continue–at least for the remainder of the week. The strongest support we’re seeing right now is at the 6,600 level. It would also make sense for the index to consolidate near this level, for this would allow directional pressures to mellow out as it trades within range of its 50-d and 100-d moving averages.
Support: 6,630.00 / 6,400.00
Resistance: 7,000.00 / 7,160.00