The index’s last trading day ended with a positive note. It seems though that the index is now again on an upward movement. The white candle formed last Friday gapped up around 65 points and close 30 points shy away from 4900.
For me it looks like a breakout from a small symmetrical triangle, with a target price level of around 4950.
I would still recommend a range trading strategy. Although the index is on an upward movement, looking at the weekly chart, the index seems to be losing steam as value turnover for last week was the lowest on the past three weeks. Also MACD on the weekly chart is opening(difference between MACD and signal line) at its widest and may indicate that any time soon things would start moving downwards.
RLC (Chart: Daily Resistance: 16.50 Support: 15.00)
RLC broke out from a symmetrical triangle accompanied with high volume. The target price of this break out is at 16.50. The break out also took down this stock’s previous high at 15.67.
This stock is definitely a buy because of its strength, but there may not be enough profit for this stock as the target price is near. If you still plan on acquiring this stock or if you already have this stock, do sell if a negative divergence is created; with the price moving higher but RSI or MACD is unable to move higher. Otherwise keep holding this stock, if this stock is able to create new highs for RSI and MACD.
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