We recently had confirmation of an uptrend, after the strong bullish day of Oct 22 created a new high and took the indice out of the distribution phase started at the end of August.
The 2 consecutive strong bullish days of Oct 22 and Oct 23 confirmed the exit. These days were so strong they created a gap strengthened by a consolidation around the top end of the gap, circa the 4840pts, adding to the bullish sentiment.
The readings of RSI, still below the overbought zone and of Momentum, still positive despite the recent rally, fuel the bullish sentiment.
The next consolidation is expected around the zone 5052-5093 were the gap from Aug 11 and Aug 12 formed.
Should the index go through, the next target will be the resistance at 5230. This is a crucial pivot point as it comes all the way from the resistance hit 3 times in 2002, 2007 and more recently last summer.
Should this scenario not happen, the market is expected to go back to its support of 4834.
The 2 consecutive strong bullish days of Oct 22 and Oct 23 confirmed the exit. These days were so strong they created a gap strengthened by a consolidation around the top end of the gap, circa the 4840pts, adding to the bullish sentiment.
The readings of RSI, still below the overbought zone and of Momentum, still positive despite the recent rally, fuel the bullish sentiment.
The next consolidation is expected around the zone 5052-5093 were the gap from Aug 11 and Aug 12 formed.
Should the index go through, the next target will be the resistance at 5230. This is a crucial pivot point as it comes all the way from the resistance hit 3 times in 2002, 2007 and more recently last summer.
Should this scenario not happen, the market is expected to go back to its support of 4834.