ASI MUST TAKE SUPPORT BETWEEN 5858 AND 5914 TO EXPECT NEW HIGHS

ASI checked 6000 points but did not hold. Now the above levels of 5858 to 5914 must be the area to watch. A strong consolidation there will take the market to new highs and test 6100 to 6200 points. FAILURE TO HOLD THIS AMBER SUPPORT AREA will test the RED ZONE which will stall the short term uptrend. Let's hope for the best, ELSE be ready to Stop Loss at your price levels. THAT'S A MUST.

Is Mahinda the New Prime Minister - Are You Sure

The biggest mind blowing game happened on Friday the 26th of October 2018. Mahinda Rajapaksha became the New Prime Minister of Sri Lanka.
What will happen to the Stock Market Now?
As reported on the 7th of this month, RSI is in a bullish Divergence. Despit the index falling RSI DIDN'T. Last Friday the Market jumped 60 points with big volumes. This is a very strong signal.

How Mahinda Rajapaksha is officially going to be the Prime Minister is not the question I want to ask you today?
Are you a person with a stock trading account in the CSE? You need to get on board now. Start buying to a plan/strategy now.
If you want to buy tomorrow the 29th, Here is a strategy :
- buy the best stocks only.
- buy a maximum of 3 stocks.
- buy only 30 to 50% of what you want to buy of a stock in the morning. Between 9.30 and 10.30am. Thereafter cover the balance 50-70% during the day.

Market has re-acted to what happened on Friday evening, in the Morning itself. Market knew that there is a change of sentiments. RSI had reacted well before all this happened.
The expectation of the ASI testing 5982 will happen and it will become a strong support way forward. Who ever is still waiting will be those who do not want to do anything to a plan.

ASI respected the RSI bullish divergence - Heading to test the 2017 low

As indicated on the 29th ultimo, the bullish divergence in the RSI prevailed. But before that the index retested the 2016 lows of 5800. The week finally closed 5883 points, 81 points above the 2016 low of 5802 points. Now we must see that the 2017 low of 5982 points being tested. The tricky part is the way the index moved in the last 3 days of the week. After hitting a low 5792 points, it reversed 91 points in 3 days, but without much trades. This is something that we have seen in the Market on many occasions. This fragility could make the market fluctuate by retesting 5800 area before it hits and test the 5968 area. That would also be healthy for a stronger recovery which needs to be watched.
We can't expect many participants to come in just yet, as a lot of them want to COPY CAT the big players. They think they would find fish in the shallow waters. Those who are bold enough are fishing in the deep sea, where you get the best catch.