On the daily chart below, we can see that the price has finally broken out of the range between the support at 33540 and the resistance at 34477. The market is repricing a higher terminal rate and what may come next is a recession.
This is bad for the stock market as we can see from the bearish price action. Once the support at 32684 gives way, the sellers will have plenty of room to the downside. That level will also be the last line of defence for the buyers.
On the 4 hour chart below, we can see the recent breakout of the range and the price bouncing from the previous low at 33030. We may see a pullback towards the broken support at 33538 that now may turn into a resistance. There will be also the red long period moving average acting as resistance. If the buyers manage to get into the range again, then we may see another run towards the 34477 resistance.
In the 1 hour chart below, we can see that the resistance at 33538 has also the 61.8% Fibonacci retracement level. The downward trendline should act as the first resistance for the sellers and the 38.2% Fibonacci level may be the spot where we will see them piling in.
The 33538 resistance will be the last line of defence for the sellers, while a break below the recent low at 33030 should give another flush towards the 32684 level.
