ASI - Uptrend Started....63 points gained within 2 days

My last post on ASI, I mentioned that it is trending or was in a trend continuation for almost 30 days. Infact it lasted for  33 days averaging a meager 2.7 points a day. That's history now. On friday(yesterday) the index moved over 63 points whilst intraday it was a 44 points gain. This is a strong move, seen all around. During the day it punched a high of 6754, thus wiping out the previous high of 6747, that had to be broken to resume the uptrend. The close was exactly 6747, which is another bullish development. All in all THE ASI SHOULD EXTEND IT'S UPTREND. Where can it go upto? one might ask, I'd say the 1st is 6800, and WON'T be surprised to see 7000 kissed in the least during the month of July. Remember that July had been a friend of the bulls in the past 2 years as well.

CFVF - may trend within a 19% range

CFVF nearly checked the pivot of 29.20 today when it hit a low of 29.50. It would ideally trend within a 19 to 20% range before moving higher. This will happen with good profit growth expectations. Otherwise there wont be opportunities in this counter.

DPL - consolidating within a triangle

DPL watch the RSI to initiate a move.

JKH - poised to break 180

JKH moved very strongly during the week. The strong accumulation is helping the bulls to increase their expectations. Need to break 180 with a support between 170 and 175.

BPPL - new support 14.90, heading higher

Keep an eye on the support at 14.90 and the 9sma at 15.20. As long as the price line is above these, happy trading to all ☺☺☺

ASI - Accumulation continues

ASI shows a trend continuation, whilst interestingly the MACD histogram lines show an uptrend, whilst the RSI is around the mid levels. I hope the trend will resume to the up, but need to see the impulse till then it's a hold.

BPPL - watch out for the next trade

BPPL is tipped to be a growing company. As such we will see nice trading opportunities in this counter. But wait don't rush!!! It must be supported at or around 14.50 and there must be an impulsive move to trigger a buy call. Let's wait........

JKH - consolidation before the Trend continuation

JKH needs to hold above 175, or worst case above 170. Anything below can take the stock and the market to a long consolidation.

Comb - Consolidation below 140, then higher

I expect COMB to consolidate between 137 and 140 before it breaks out and test the gap between 143 and 145.

FLCH - Breakout would trend upto 5

FLCH is heading for new highs. The breakout from the present triangle could take it upto test 5.00

MBSL - Heading to 16.00

Hi Guys interesting development in the MBSL price action. Bullish bias towards 16.00

CFVF - Need to absorb the heavy resistance

CFVF has heavy resistance between 30 and 35. Highs will depend on the way the selling is going to be absorbed.

Dankotuwa - DPL.N.0000

DPL is poised to breakout of 8.70. If the move is impulsive, then we will see it testing the resistance @10.00.

ASI will extend upto 6880 points

ASI should first breakout out of 6747 the present high. Then will test 6880 points.

LOLC - Making new highs Update 1

Watch for the strong base to be formed between 104 and 109. Once that's established we will see it moving towards 115.00. Happy trading

ASI - Trend Reversed . Short term Sell - Update 2

In my post under the above caption I suggested that the trend in the ASI had reversed. The index was at a lower high of 6412 points. However it was a short lived drop, as the market continued it's aggression to move above last years' high of 6719 to a new high of 6747. Interestingly the 9 day moving average had been a nice support during this rally since 31st March 2017, but has now turned into a resistance, which is an important line for any short term trader. Furthermore the RSI which was in the over bought region from 5th of April to the 25th of May has now dropped down to the mid range between 50 and 60 points, with a downward slope. The MACD, another important indicator is also extending in the negative territory. We now can see that the index is trying to hold onto a support @ 6650, and break out from the said new high of 6747. A failure to hold onto the 6650 support can make it hold @ 6600 points. We must see what will happen then to all the aforesaid indicators, and the period that will take to see the drop, TO decide on the way forward. Presently it is the 9 sma that am looking at, which is acting like the pivot.

However it must be noted here that we as technicians be it very basic like ME or Advanced like some who are reading this post need to understand one thing. And that is that the market is NOT exactly behaving as if we are the choreographers. Just like your chart interpretation OR prediction is not the same as mine as some one said "if you put 5 Elliot Wave techs in a room, you may get 5 different starting and stopping points of each leg"  What I believe is that the real life changes direct the market trend. Which in turn will reflect in the charts. As such we can see many investors, mopping up stocks of great companies of their choice due to many positive reasons which are fundamental in nature than technical. Hence fundamental and Technical indicators are vital and you who are reading this post must have the basic or advanced knowledge of them. Please don't hesitate to call me on 0773 219 506 or mail me on saliya@capitaltrust.lk.