Nb. Our comment from the 08/19/2022 (Not published)
Nb. Our comment on 09/21/22
Well, the September expiry did end up a textbook one.
On the Wednesday and Thursday, the intraday lows were 7259.24 and 7258.67 respectively, and the EDSP was 7264.45. So, there was no doubt at all they held it in its zone over the rollover and expiry, which when you consider what was happening in the US, then this is even more impressive.
Moving swiftly on to more important matters…October, and the new 5-week expiry.
Obviously, the close last Friday was south of the zone, so the grand intentions of September evidently didn’t carry across into the October expiry.
With the short notice Bank Holiday on Monday no doubt affecting things, Tuesday was going to be crucial in determining what the possible intentions might be for this expiry.
And having been almost 100-points higher at one stage seemed to answer that. However, it really didn’t take much to knock the legs out from under that rally, and very early on into the proceedings as well.
More importantly, the bottom boundary of the zone (7250) hardly put up any resistance at all. In stark contrast to the week before.
The next level of support is not until it hits Y2 at 7150.
After that, you have to wait until 7050 before it hits R1.
Even from the very start the ratios were lopsided (no Y ratio above the zone), so it always had the potential to be a hard slog this expiry for the bulls.
Therefore, the only question that really remains, is what will tempt them back in to the fray, Y2, R1 or might it take R3 at 6950?
Range: 7050 to 7250