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The intensity of the decline remains critical as index breached engulfed its 6 days price action within 1.5 days itself sendingjittersinthemind of investors & traders. Though on its daily scale there is no reversal candlestick formation but a breach belowits 20DEMAzonecoupled with an ‘Engulfing Bearish’ formation on its weekly scale is a definite sign of caution. The pattern needs a confirmationviafollow through weakness in the succeeding candles, the current weeks action would determine the magnitude of the correctivephase.Trend strength indicators RSI on the verge of breaking below 50 with ADX already slipping below 25 is not a good signof confidence.Hence traders should refrain from building aggressive positions on either during the week & wait for more clarity to emergepostthisweekly close. An early close above 17800 could evoke the upside move towards 18210 only while a sustained closing below17300couldpush the index towards 17000.

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