Last week, the index managed to form another leg up, starting from the recent low at 11,814. On Friday prices showed an inside day at the centre line of the Bollinger Bands, indicating s rest within the short-term uptrend. With Monday’s upside breakout, the index triggered a continuation buy signal. However, yesterday’s slump negated this long-indication, changing the bias from bullish to short-term neutral with further consolidation to be expected. Key-resistance and next upside objective if prices take out resistance at 14,254 is seen at 15,318. It would take a decisive close above that latter level, in order to establish a major bottom and pave the way for an intermediate-term uptrend.
Strategy: Short-term aggressive traders may await a move above 14,254 before taking or adding to long-positions. Risk-averse investors with an intermediate-term perspective may await a close above 15,318 before doing so. A switch into short-positions may be pondered below important support at 11,814.
No comments:
Post a Comment