The index keeps creating new highs (Dec-13 and Jan-06) and follow the same uptrend initiated in mid-November.
Despite a slowing down in the pace of going upward (illustrated by a divergence with the Momentum indicator), there is no obvious sign today leaning toward a reversal. Furthermore, volume on up days outdoes volume on down days.
The index might come back testing the recent uptrend, around the 2,255 pts mark. Two successive breakouts i) below the uptrend and ii) below a support at 2,232 would change the current scenario (creation of a broad formation showing indecision rather than reversal of the uptrend).
- Current holders would keep their long positions
- Those looking to enter the market would either initiate long positions now or could try to get a better price up to 10 points cheaper.
- Close long positions if break below the 2,255 and/or the 2,232 mark
Despite a slowing down in the pace of going upward (illustrated by a divergence with the Momentum indicator), there is no obvious sign today leaning toward a reversal. Furthermore, volume on up days outdoes volume on down days.
The index might come back testing the recent uptrend, around the 2,255 pts mark. Two successive breakouts i) below the uptrend and ii) below a support at 2,232 would change the current scenario (creation of a broad formation showing indecision rather than reversal of the uptrend).
- Current holders would keep their long positions
- Those looking to enter the market would either initiate long positions now or could try to get a better price up to 10 points cheaper.
- Close long positions if break below the 2,255 and/or the 2,232 mark