The index moved sideways last week which possibly indicates that the upward momentum is starting to lose strength.
It is now just above an existing resistance line connecting the peaks of Jan-May 2012. This now proves to be a strong resistance considering the sideways movement of the index last week.
For the coming week, watch out for possible bearish divergence where the index continues to move higher, but the RSI or MACD moves lower. If such an event happens, the next support would be around 6350 which is the 10 day moving average and 6270, the support line connecting the peaks of Jul 2012 and Jan 2013.
CEB (Chart: Daily Resistance: 67.50 Support: 66/65)
I have been following CEB for the past months and this might be a very fulfilling stock if a break out happens. CEB is now in the brim of its resistance line at 67.65. Looking at the chart it is very visible that this is a rounding bottom considering the previous downward trend.
There are 2 possibilities for this stock. One is that it is possible that this stock might breakout OR second, if the resistance line is strong, this would form a cup and handle formation, bringing the price downwards to form the handle part. On both cases, breakout point is still the same at around 67.50 and the target price is around 83.
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