Monday, 20 March 2017

21 Mar 2017 - Inching up on high volume


A wide price band was seen on 20 Mar, with a 11.19-point range traded between 1,755.26 and 1,744.07. The index inched up by 4.21-points on heavy buying activities to settle at 1,749.41. 

Supports at 1,729, 1,734 and 1,749 may be obvious for 21 Mar, whilst profit taking at the 1,752, 1,755 and 1,772 resistance areas may emerge. All five indicators (CCI, DMI, MACD, Stochastic and Oscillator) we monitor are now positive, signalling that a further medium-term price rise will be possible (as the index held above 1,651.45). 

Investors may buy on dips, as the index turned into positive territory and moved above the 18 and 40 SMA. However, the FKLI contracts (Mar, Apr, Jun & Sep 2017) turned around par (ranging from 3.41-points discount to 2.59-points premium) against the index on position adjustment activities. Buying activities may emerge after a minor Wave 4 low was seen at 1,713.55 (10 Mar).

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