It has been a long time since our last comment, but as long as you knew the zone was 7250-7350 then that was all you needed.
Basically, the final week of the September expiry, 16th to the 20th Sept, was all about either 7250 or 7350, although the upper boundary was certainly the more tested out of the two.
And then again, the first week of the new October expiry, 23rd to the 27th September, has also been all about the zone.
The first two days were all about 7350, with intraday highs of 7362.30 and 7348.97 respectively.
The Wednesday was all about the other end, with the intraday low of 7212.96.
Nevertheless, all three days closed back inside the zone.
The fun started on Thursday, and it was quite the epic battle, again at the upper boundary, but this time desperately trying to keep the close above 7350.
It was exceedingly close, but in the end, they managed it, ending at 7351.08, having kept the closing auction to just a small move.
Of course, we can all see what happened on Friday, and after such a long battle, the breakout was totally overdue.
From here on up it now gets interesting, as R1 starts at 7450, and perhaps worth noting, is that Friday’s intraday high was 7440.77.
We aren’t going to point out the differences in the ratios in the two columns above, as you can easily see for yourself how they have evolved.
But, suffice it to say, 7450 is now a critical level, being this market first encounter with a R ratio, and don’t ignore the fact the corresponding ratio does not appear until 7200, which is a long way away.