The Keystone for July 02, 2010
Analysis and Overview:
The index opened positive and after touching its day's high, took to a steady downtrend only to recover to close marginally below the open. Volumes were the lowest since floor removal and stood at just 20.83 mln. The index's cluster of candlesticks is a bearish one as despite three consecutive positive closings it failed to close above Monday's open, which was 9,790 points. Moreover the quarterly formation is a "Dark Cloud Cover" formation which augments the view of a top.
The Stochastic Oscillator on the daily chart maintains its sell signal, which makes the formation a bearish divergence. Moreover the RSI on the daily chart has started to stall as well. Also, trend forecasting indicators have now turned bearish on the index.
As highlighted above, the index has been witnessing an adjustment phase to Monday's bearish formation and the cluster of candlesticks created thus far is bearish. This is bearish and any upside should be taken advantage of to sell. Critical resistance stands at 9,865 points.
The first support is at 9,668 points and the second support is at 9,565 points. The first resistance is at 9,796 points and the second resistance is at 9,860 points.
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