The index broke out from the ascending triangle earlier than expected. I was still expecting it to consolidate for another week before breaking out. But trading sentiment seems to be positive, probably due to the yearly window dressing by fund managers and buy backs by the companies.
Fundamentally the companies are still the same and company profit is not the main reason why the stock market index is breaking new highs. While there is an advantage of profiting from the new bullish state of the market, do not however expect that this will last long. Usually, by Jan or Feb, the stock market goes down again after the window dressing period is over.
When the RSI reaches 70, expect a pull back to happen with the index anytime by first week of December.
JGS (Chart: Daily Resistance: 38.50 Support: 35.25)
Last week JGS had a sudden increase in volume and price creating a possible flag/pennant area pattern.
As long as the stock does not go below the 10 day moving average or around 36 price level, this stock is a good candidate to acquire considering the possible pennant or flag area pattern, which could take the stock near 45 giving a possible 10% return in a short span of time.
There seems to be something brewing with GLO. The stock has been consolidating for the past 5-6 months and it looks like in 2- 3 weeks time, something will happen to this stock. Although I am not sure what will happen as it could either be positive of negative considering the symmetrical triangle the stock has been manifesting in its consolidation.
If a break out happens, we can see this stock moving towards 1400 level, otherwise, this could go as low as 900.
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