The Keystone for June 16, 2010
Analysis and Overview:
The index opened positive and after touching its day's high, took to a corrective trend to dip in the red only to recover to close in the green. Volumes declined by 7.34% and stood at 82.95 mln. The index's formation was more to do with gap-filling which was created on Monday. This is further evidenced by the relatively lower volumes. The adjustment could continue, however, the trend remains bearish.
The Stochastic Oscillator on the daily chart has shown modest improvement however maintains its sell signal, while the RSI on the daily chart is in a downtrend. Also, the MACD has confirmed its sell signal. Moreover the 30-DMA maintains its downtrend and in the near-term could cut the 200-DMA from above thus adding strength to the bearish view.
The trend remains bearish and the index is likely to test 8,684 points.
The first support is at 9,187 points and the second support is at 9,102 points. The first resistance is at 9,324 points and the second resistance is at 9,399 points
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