ASI is heading towards 6500 points

After the top of 6708 points on the 16th ultimo, the ASI has come down gradually to 6519 points. This is an average fall of 14.54 points per day for 13 days. There is a major psychological support at 6500 points, and a fib support at 6506 points. A failure to hold there can expose it to track downwards to 6450 area, as many feel this level is a support to hold in the short term. In the meantime the RSI has now fallen below the middle level of 50 points, as it is now around 47 points. As long as we are trending within the present uptrend I expect the ASI to move beyond 7000 points and possibly move beyond 7500 points. On to the down side I would not worry as long as we are above 5800 points which was the starting point of the present uptrend. Either way the pace in the market is very slow, and trading too makes very erratic. No stock follows a trend for continuous days. As such it is very important to watch your stocks very closely to get in to a position. Following basics such as minimizing the number of stocks to watch to about 5 the most and buying them on dips, whilst sticking to the stops need to be followed with responsibility. As for the investors who are looking for periods beyond 6 months from now, the present momentum is an ideal platform. There are many counters that offer very attractive returns for who ever that would look for more than 6 months.