The recent bus bomb blast incident made a mark on the index as seen on the day after the incident (Wed) with a black candle and large value turn over. This however, did not have a lasting effect, as on the following day, the index recouped losses with an equal amount of value turnover. This is a positive event for the index, however, it is still not a strong indication of bullishness as it was followed by a black candle again with considerable value turn over. So as you can see, the index is still mixed and there is still no strong indication of direction. For the coming week, the index may move upward towards resistance near 4126, but even with that movement, the index is still on a sideways movement with a slight downward skew. Observe if the index will be able to move beyond the resistance line, if it does, then hopefully this would be the start of continued upward movement for the index.
The last trading day of ORE saw a black candle with a very large volume. Logic dictates that this stock should be avoided. However, I’m inclined to think otherwise for the reason that the stock is now very much oversold with the RSI going below 30 level. If the stock continues to move downward, I believe that it would not be able to sustain the downward movement any longer and eventually bounce back up. The bounce can move towards 3.50 for a quick profit of around 10%
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