Indicators Suggest Recovery To Continue; 30-DMA Creates Resistance

The Keystone for September 29, 2010

First support 9,928 points, second support 9,866 points; First resistance 10,040 points, second resistance 10,103 points

The index opened positive and remained strong throughout the day to close off the session in the green. Volumes increased by 25.57% and stood at just 86.74 mln. The index managed to register a higher high and a higher low, however, the 30-DMA created resistance. There is a bit more steam left in the recovery phase, with resistance placed between 10,050 and 10,140 points.

The Stochastic Oscillator maintains its uptrend as well as its buy signal having now reached the half-way mark of the overbought/oversold cycle. Moreover the RSI has shown some improvement as well. This confirms the above view that the recovery phase is likely to continue for now.

The first support is at 9,928 points and the second support is at 9,866 points. The first resistance is at 10,040 points and the second resistance is at 10,103 points.