is recovering very nicely and has broken decisively above 6620 after moving out of the diagonal formation last week. This suggests that we are now in a new recovery phase that could extend further in the near term. Even if the move up from 6317 turns out to be corrective, we would still expect more upside within wave C as long as price stays above 6640. For now, it looks like the index could continue toward previous highs, but there is strong resistance around 6894 and 6970 that may limit the upside.
On the daily chart, the market reacted nicely from the 6500 support area, which may indicate that a higher degree wave four has been completed. If that’s the case, then wave five of five could still unfold later this year, likely in the second half.
However, if price starts to move lower once again, directly from here, then it would suggest that a larger wave IV correction is already underway, with next important support for this year, coming in around 5650
