Possible Recangular Top in Small cap's Index..!

1- Closing below the 50EMA after 78 weeks
2- Sideway for the past 45 weeks
Possible scenario:
A: Rebound at 2080-2100 level
or
B: closing below 2080 level and further decline to 1780-1700 and completing a rectangular top formation

Best strategy: wait for A or B, it is not a good time to Short/Long

This time could be different:



and we may see a breakout

Education:
A rectangle occurs when the price is moving between horizontal support and resistance levels. The pattern indicates there is no trend, as the price moves up and down between support and resistance. The rectangle ends when there is a breakout, and the price moves out of the rectangle. (Investopedia)

You can see the most important support(green line) and resistance (red line) levels.

Best,
Moshkelgosha

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Reference:

https://www.investopedia.com/articles/trading/08/rectangle-formation.asp