Short-term bullish bias
Key levels: downside: 11920/ upside: 12050
The index has accelerated to the upside after it breached the daily resistance of 11850 from last October. We can expect the moving averages to diverge and reflect the increasingly bullish bias in the medium-term. The trendline is a key support to keep the trend in place.
On the 4H chart, the bullish MA cross is a confirmation that the index has found aggressive buying interests. However, there is signs of over-extension as the RSI indicator is above the over-bought area of 70. On the hourly chart, the RSI has reached below 60, which suggests a pullback to give bulls some breathe. The uptrend remains intact as long as key support levels hold well and gather enough buyers.
11920 is the immediate support where bargain hunters would be waiting for. On the upside, with enough faith, raging bulls may push the price towards 12050 or above.