The rally lost steam and could not rise till 5180 levels as expected.However the slowing down of the price moves near the median line and the H & S pattern of median lines gave clues of a short term reversal.Today's price reached the Blue lower median line parallel drawn with the recent minor swings of the rally at 5000 zone as expected. So the correction to the recent rally expected to continue for the next few days.The last three hour bars give an indication of the second wave of the correction which can oscillate around the 5050 levels to reach 5100.This point would be another spot where a short can be considered based on price bar patterns.The resistance at 5100 can lead the price down towards 4985 / 4950 which corresponds to 38.2% of the rally and would again be a good support level to enter Longs.
If 4950 fails, then 4900 would be the next support area, which is at the Lower median line of the Red Pitchfork drawn on the daily bar chart.
Alternate view is if price moves past 5100 with momentum, the downmove will get negated.
Please keep posting ur views on Ilangos site also - It helps when everybody is together under the village banyan tree like a panchayat
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