Last Thursday’s slightly more than 20-pt retracement has increased the odds of the market creating a downtrend channel. Judging from the very volatile trading days prior to last Thursday’s sharp retracement, it looks like the bears were returning the market to challenge the bulls’ dominance.
What is more worrying for the bulls now is that the index is at great risk of creating another lower low after seeing last Friday’s dead cat bounce. A crack below the recent low of 1,490 pt-level will likely see the market retracing to the next strong support situated at the 1,472 pt-level.
While watching if the index is in the midst of creating of a downtrend channel, we are sticking to our Neutral view. This possibility is obviously high after last Thursday’s more than 20-pt retracement and the violation of the uptrend line.
From the current level, immediate support lies at the 1,490 pt-level, followed by the 1,472 pt-level. To the upside, we are now eyeing immediate resistance at the 1,500 psychological mark, followed by the 1,524-1,536-pt area.
What is more worrying for the bulls now is that the index is at great risk of creating another lower low after seeing last Friday’s dead cat bounce. A crack below the recent low of 1,490 pt-level will likely see the market retracing to the next strong support situated at the 1,472 pt-level.
While watching if the index is in the midst of creating of a downtrend channel, we are sticking to our Neutral view. This possibility is obviously high after last Thursday’s more than 20-pt retracement and the violation of the uptrend line.
From the current level, immediate support lies at the 1,490 pt-level, followed by the 1,472 pt-level. To the upside, we are now eyeing immediate resistance at the 1,500 psychological mark, followed by the 1,524-1,536-pt area.
Tiada ulasan:
Catat Ulasan