Before giving my write up for the present status, I'd like to post the images with regards to the hourly chart which I started following since 15th of December 2019.
My 1st Image
Date : 15.12.2019
Narration : ASI was successfully defended at 6050. But the strength of the Bulls are at check!!!
Image:
2nd Image
Date: 18.12.2019
Narration: RSI on the ASI shows a Bullish Divergence on the Hourly Chart.
Image:
3rd Image
Date: 20.12.2019
Narration: ASI - Hourly Chart has a bullish formation, but how many naysayers are out there due to the SME Moratorium
Image:
4th Image
Date: 27.12.2019
Narration: ASI successfully defended 6050. Rose above 6100!!!
Image:
Now to the present status
You can see in the 4th image a zone coloured in Pink. That is the resistance zone that was expected to be cleared and form as a base for the trend extension to test higher highs further on. That zone is between 6122 and 6185, but 6100 is the support that is needed to be defended at present. That area of resistance was tested within a matter of 4 market days during the week that we ended. Weekly high was 6175.76 and trended down to test 6100 points. ASI closed the week at 6111.28. The aggression on the RSI had to cool off. That's exactly what happened during the week. It propelled to hit a high of 87 points (which is the previous high, as you can see in the chart), had to see bears taking control of the momentum HENCE. Bears were successful in bringing the RSI down below 50 points to close at 47 points. The momentum is key at present. We can see that the top counters in the market are consolidating after testing the recent highs. The activity is confined to a few counters with stories than any substance. This has made traders to gather in numbers to trade a few counters. If these traders aren't used to money management, they will certainly experience what they do not want to experience. Trading with lot sizes that can be easily stopped is a must in the present trend than ever before. Policy Makers and Market Participants have high hopes for the Economy and the Market in 2020. That's a chance (Risk) you need to take in the market. After all if you don't take risks no need to get into the Stock Market. You will succeed only if you have knowledge, experience and confidence to manage that Risk. Else PLEASE stay away and park your precious cash in lower risk assets.
Present image is given below:
For those who are interested in having a look at the Daily, Weekly and Monthly Charts, I give them below:
Daily Chart as at 03.01.2020
Weekly Chart as at 03.01.2020
Monthly Chart as at 03.01.2020
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