Market Overview
During the trading session on February 5, the MASI index intensified its downward trajectory, closing around 18,120 points, reflecting a decrease of 1.78%. This movement followed a significant breach of the support range between 18,380 and 18,400 points.
Technical Analysis
The daily chart has validated a Head and Shoulders formation, confirmed by the index's drop below the neckline positioned at approximately 18,400 points. This technical pattern suggests a continuation of the bearish trend.
An important technical element emerged during the session as the index tested the support zone of 18,100 to 18,200 points, ultimately closing at the lower boundary of this range. This level has been closely monitored since the onset of the current consolidation phase.
A potential pullback towards the neckline at 18,380 to 18,400 points remains a possibility. The 18,100 to 18,200 points zone has now become a critical technical area to observe.
Weekly Perspective
From a weekly standpoint, the consolidation appears to be forming a descending triangle. A breakout to the downside at the neckline level reinforces a negative bias, which will persist unless the index reclaims the 18,380 to 18,400 points range.
Key Technical Levels
Key resistance levels to monitor include the 18,380 to 18,400 points range, which previously served as the neckline. On the support side, critical levels are identified at 18,100 to 18,200 points, followed by 17,625 points.
The reference zone projected from the Head and Shoulders pattern is between 17,200 and 17,150 points; this should be regarded as a reference point rather than an automatic target.
The bearish scenario would be weakened if the index manages to sustain a closing position above the 18,380 to 18,400 points range, which would indicate a return to the previous breakdown zone.
