Since the beginning of the year the index gained more than 19.0% and last week alone rose more than 2.5%, being in a well-established bullish phase since early November.
Last week the index rallied with a wide range and closed near the high of the week, in addition managed to close above the previous week high, which suggests a strong bullish momentum.
The stochastic is showing an extreme overbought market although is still displaying a strong bullish momentum.
Expecting an upward move to a Fibonacci extension at 1,424 (scenario 1) on a break above the previous week high at 1,348 but if a correction occurs and bounces from the weekly support at 1,292 it may push upward to the move to the Fibonacci extension at 1,424 (scenario 2). Nevertheless a break below the weekly support at 1.276 may trigger a sell-off down to the weekly support at 1,212 (scenario 3).