(Chart: Daily Resistance: 3342 Support: 3073)
The index reacted positively with the good turn out of the election. The index jumped from the lowest level last week to 3260 on the first trading day. However, again, the resistance line from June 2008 still seems to be a hindrance to the upward movement. Also, there seems to be no follow-through on the trading except last Thursday, but that was not sustained as trading last Friday was lesser.
For next week, expect a downward to sideways movement. Do observe the resistance line from June 2008 if the index is able to move further beyond that line.
Notice also that the MACD and RSI seems to be moving lower, while the index seems to be still moving higher, but a bit slower. If the MACD and RSI records a lower high in the following days, while registering a new index high, this may be signs of a bearish divergence and a signal to start going light.
RFM (Chart: Daily Resistance: 1.04-1.66 Support: 0.95)Looks like RFM is on the come back, with a rounding bottom formation that broke out last Friday with large volume. Target price for the breakout is around 1.66. The only problem with the breakout is that it will have to negotiate a tough upward movement as the resistance from 1.04 to 1.66 is the large gap down that happened last Sep 2008. Also looking at the span of the rounding bottom which is nearly 1 ½ year, this gives us an idea that target price would take longer to be achieved. But for those going long, this would be a candidate where you could park your funds.
EEI (Chart: Daily Resistance: 3.75 Support: 3.34)EEI seems to have broken out of a symmetrical triangle, with a target price of 4.0. Only resistance is 3.75, which is a previous high from 2008.
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