Summary
· The Index bounced nicely yesterday and is expected to continue its bounce this morning at least in the early hours of trading
· The 3,347-80 support area is important as it combines the recent cycle low from June and the 200 day moving average. While above it a minimum attempt to fill the gap is likely
· A bounce towards the 55dma at 3,593 and the towards the declining channel resistance at 3,620 would provide a good selling opportunity
Strategy: Sell 1 unit at 3,560, add 1 more unit at 3,600, target a move to 3,312 with a stop on a daily close above 3,652 (orders GTC)
Daily chart