NY1: some correction in the price range?

A price action below 4040 supports a bearish trend direction.
Increase short exposure for a break below 4010.
The target price is set at 3840.
The stop-loss price is set at 4230.
Testing its 200-day simple moving average. Crossing below it might set the long-term trend as bearish.
However, the price action is creating a range (see the red rectangle) and might create a support and resistance range.