The index gapped up slightly more than 3 pts at the opening yesterday that could be a signal of its desire to rebound from the current level. This was after the market fell by about 10 pts last Friday followed by another 9.16-pt loss on Monday. Nevertheless, the index gapped up yesterday and ended the day with a 7.95-pt gain.
We can detect the change in market sentiment over the last three sessions. In fact, the two latest candlesticks constructed a “Bullish Harami”. However, we will only know whether the market will retrace further or not from the current level if the index fails to violate the four-day downtrend line as is portrayed in the above daily chart.
As mentioned previously, the accuracy of the breakdown signal for the short-term trend violation would normally not be very high. Still, there is still a risk that the index might retrace further, possibly towards the new uptrend line.
We will continue to stick to our bullish bias view on the near-term stock market as long as it maintains a posture at above the new uptrend line.
The next resistance still lies at the psychological 1,500 pt-mark, followed by the 1,524.69 pt-level. To the downside, the 1,479 pt-level is the immediate support, followed by the 1,439 pt-level.
We can detect the change in market sentiment over the last three sessions. In fact, the two latest candlesticks constructed a “Bullish Harami”. However, we will only know whether the market will retrace further or not from the current level if the index fails to violate the four-day downtrend line as is portrayed in the above daily chart.
As mentioned previously, the accuracy of the breakdown signal for the short-term trend violation would normally not be very high. Still, there is still a risk that the index might retrace further, possibly towards the new uptrend line.
We will continue to stick to our bullish bias view on the near-term stock market as long as it maintains a posture at above the new uptrend line.
The next resistance still lies at the psychological 1,500 pt-mark, followed by the 1,524.69 pt-level. To the downside, the 1,479 pt-level is the immediate support, followed by the 1,439 pt-level.
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