After a gap-down open, the market remained highly volatile and continued to fall for the first 30 minutes, indicating strong early selling pressure.
Post the initial decline, price began to consolidate within a declining channel. During this phase, RSI divergence started to appear, suggesting weakening downside momentum despite price making lower levels.
Around 10:55 AM, the index broke out of the declining channel and rallied nearly 150 points. This move was followed by a brief consolidation, after which price extended another 20 points to the upside.
At around 1:00 PM, the market broke down from the immediate resistance zone and corrected nearly 130 points, retracing down to the 0.7 Fibonacci level. From this retracement area, price again stabilized and consolidated, before resuming its upward move.
The index then rallied approximately 173 points, with multiple consolidation levels forming along the way, indicating orderly continuation rather than impulsive chasing.
Separately, a clear “W” (double bottom) pattern was formed during the basing phase of the session. This structure itself offered a tradable opportunity based purely on price action, independent of indicators, and could have been used as an early long setup.
Overall, the session offered three high-quality trading opportunities:
- The channel breakout, supported by RSI divergence
- The rejection and breakdown from resistance, leading to a controlled retracement
- The bounce and continuation from the 0.7 Fibonacci level
The day reinforced that when structure, levels, and momentum align, a few well-defined trades are sufficient, while the rest of the session is largely noise.