Bel 20 (Belgium): Correction after Impulsive move
The BEL20 is the benchmark stock market index of Euronext Brussels. In general, the index consists of a minimum of 10 and a maximum of 20 companies traded at the Brussels Stock Exchange. Since 20 June 2011, the BEL20 has contained 20 listings.
The index was moving in a positive direction forming a higher high and higher low formation but RSI which is a momentum indicator has started exhibiting negative divergence which suggests that momentum on the upside was slowing down. Prices are moving in an upward sloping blue channel and can move down to test the support of the channel which is near 3000 levels. Breach of 3000 levels will infuse further selling pressure.
As per wave perspective, prices were moving in an impulse upmove from December 2013 and made 5 wave structure. The high was 3154, thereafter it started moving in a negative direction. The current downmove is corrective in nature.
In short, BEL 20 can move down further and can test 3000 levels over short term.