The index closed below the lower part of the Bollinger band on Friday. Not a good sign. The Bollinger band has narrowed significantly compared to a few weeks ago. Market is searching for a reason to breakout of the trading range. Now it seems like high oil price has given the Bears reason to come back to sell down the market.
The –DI went above the +DI on 22 May 08. However the ADX is still below 20. This means that the market is weakening but it has not changed into a down trend yet.
The MACD chart is also looking bearish, having made a crossover on 20 May 08.
RSI chart is near the oversold region. The index is most likely to stay in oversold region for a few more days before it can stage a rebound.
The next support level is the pivot point of 3033 set on 14 Apr 08.
No comments:
Post a Comment