Let's first examine the smaller red channel inside the larger yellow channel: March 2023 was the start of this uptrend. In August till date, the index has fallen below 20 and 50 EMA. Yesterday (16 Aug), the index closed below the lower red trend line and has gone below support level S1 (green line). If the downtrend continues, it is likely to go down to 4300 (S2 - green line). This support would be a strong one since by then the lower trend line of the larger yellow channel would be near S2 (two supports). If this support fails, most likely the index will lose 200 EMA and end up in the range of 4100 (S3- green line).
Yellow channel: The longer uptrend began in October 2022. If the index breaks the lower trend line of the smaller red channel, it will receive support of the lower trend line of the yellow channel in end-August. By this time, as mentioned above, the index would be in the range of 4100. By this time, we would have an oversold RSI (below 300) and the Squeeze Momentum indicator would be most bearish, indicating that bullish run is to begin.
Tesla's bearish correction is ending. Same for Microsoft. Apple is nearly oversold and its bearish momentum is at its peak. Same for Nvidia. Amazon has started its bullish run. Google's bullish run is slowing down. Meta has just begun a bearish correction. So, of these, only Meta has a bearish outlook in coming days.
All in all, I am more inclined to say that the current correction will start showing signs of recovery when index is in the range of 4300 ie. between a week and two from now.
Yellow channel: The longer uptrend began in October 2022. If the index breaks the lower trend line of the smaller red channel, it will receive support of the lower trend line of the yellow channel in end-August. By this time, as mentioned above, the index would be in the range of 4100. By this time, we would have an oversold RSI (below 300) and the Squeeze Momentum indicator would be most bearish, indicating that bullish run is to begin.
Tesla's bearish correction is ending. Same for Microsoft. Apple is nearly oversold and its bearish momentum is at its peak. Same for Nvidia. Amazon has started its bullish run. Google's bullish run is slowing down. Meta has just begun a bearish correction. So, of these, only Meta has a bearish outlook in coming days.
All in all, I am more inclined to say that the current correction will start showing signs of recovery when index is in the range of 4300 ie. between a week and two from now.