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.

LOLC - Making new highs

Watch the price action of LOLC. After hitting the price range of 2013 we see it is trending up to reach the highs of 2015. With a support now around 95-100, the range of resistance is between 112 and 116. Lets see how it will perform in the short term.

Can ASI break out of the new High?

If the new high of 6747 is not breached we may see a minor pullback.

ASI - Trend reversed. Short Term Sell

All Share Index rallied so fast for 11 consecutive dates, shooting the RSI upto 84 points by the 12th April. This overshoot had to stop, and stop it did today. Forming a swing high of 6421 on that day, made a lower high today at 6412. Suggesting that the trend has reversed in the short term. The pace of the uptrend shows some strength, but the issue is that the bigger movement was witnessed only in a few counters such as JKH and CTC. JKH saw the biggest turnovers, whilst CTC chipped in with higher price gains. The rest of the Market lagged behind, but saw some decent gains in excess of 30% in the said period, but with thin turnovers. However we need to be happy that the down trend reversed at 5968 points and moved more than 450 points in a very short spell, which had not happened during the aftermath of the post war rally. The spontaneous spike could be the beginning of a fairly long term uptrend. But pullbacks as we saw today need to be expected if a strong trend is on the cards. In the short term the Index should take support above 6100 points, to extend the uptrend. That is roughly 200 to 300 points below the present close of 6351 points.