As expected, the index moved lower last week, technically due to low value turn over on the run up from the previous week. This however may change for the coming week as the index moved positively last Friday. The small white candle was accompanied with relatively large value turnover compared to the previous days of the week, but still lower relatively compared to the other trading days of the year.
For the coming week expect a sideway to upward movement for the index. But, observe the value turnover of the index. If the index moves upward for next week, this should be accompanied with larger value turnover. Otherwise, the index would either just move sideways or lower.
Upcoming support is near 3650 to 3630 which is also the 130 day MA support.
CEB (Chart: Daily Resistance: 90 Support: 74.50)
CEB has been way below the RSI oversold level of 30 and is at 15 right now. If the market does move positively next week, CEB would be one of the quick profit stocks that you might like to get. Trading last Friday formed a hammer at the possible bottom which is a reversal indicator. This however, needs to be confirmed by the succeeding candles. If the stock moves higher by Monday, accompanied with relatively large volume, this may be the confirmation of the reversal. Even without the confirmation of the hammer, this stock will definitely move upward, the only question is when? For now the oversold RSI level provides us a clue that the “when” part would be in the coming week or next week. The “how much” part is still unclear, but immediate resistance at 90, puts the stock in a very decent profit of around 15%.
Do observe the MACD as well. It seems though that the MACD, is forming higher lows, while the stock still moves lower. If the possible upward movement does fulfill this, then this is probably one stock to consider for going long.
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