Index analysis
Based on the daily chart, uptrend still intact as the index
hovering above trend line and 30 days moving average. Raising channel can be
noticed as the index travel within the channel. Upside target can be acquire by
using the channel line (illustrated above). However, divergence can be spotted
on volume and RSI. I reckon
that short term correction is about to happen and
will test immediate support level at 1730. Failure to stay above 1700 (lower
channel line) will lead to further correction.
Trading strategy
Since correction is imminent, trader may enter new short
with the confirmation of RSI hooking down and bearish harami on the latest
trading. Nevertheless, trader should alert on the window dressing activities
that usually start at the end of the year that will push the index further up. Initiate
new long upon breakout from all-time high. Use indicator to confirm the
breakout.
Price
projection
Short term
(short) Target 1730 (resistance turn support
and opening of a gap)
Cover
short 1790(if it closed above all
time high)
Medium term(long) Upside target 1900 (psychological level and x to x method)
Resistance 1800 (previous high)
Support 1730
(resistance turn support and opening of a gap)
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