War breaks in Ukaine. Today's price action will tells us where the market wants to go.
War finally broke. Don't lose your heads... yet.
Historically, markets are weak on rumors of war but recover when the bullets start flying. However, there is still the intermediate selling program of the other fears of inflation yada yada.
Anyways, here's the market structure summary.
The index is on a key support zone that is support for medium-term trends. Today's price action is a key one. If a reversal is to occur, it should sometime today. The best scenario is for a capitulation followed by a sharp recovery.
If this happens, it could mark the start the making of an intermediate bottom.
However, if the price closes below the support zone of around 4225 without some kind of reversal candle, it's likely to continue lower to fulfil the price projection of a breakdown of the Head-and-Shoulders Pattern.
The price projection is around 3800.
Another way to find where the next support is to see when the RSI hits oversold.
If the price gets near 3800, it will be a high reward-to-risk area to buy stocks of good companies with clear earnings stories.
Take care all!