BFI index represents a good portion of the market in terms of the Market Capitalization. As such its' progress is very crucial for the ASI. As I have been pointing out, the BFI surpassed the highs of the 2010/2011 period and hit an all time high of 19913 points during August 2015, just after the General Elections. Thus re-rating the momentum of the sector. However it retraced to the supports of 2012/2013 periods and consolidated within 14000 points and 16700 points for a period of 15 months.
This has now found its' momentum build up, and forming a strong support at 16000 points. At present it needs to form a strong base between 16000 and 17850 points before a breakout and trending up to test the present all time high of 19913 points. Expect a pause in the index during the early part of next week and progress towards a trend extension thereafter.
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