The index is still treading the line plotted by the 65 day moving average and it seems that it has confirmed a sideways channel between 4400 and 4290.
If the index breaks out of that small sideways channel we could see the index moving back up to the previous high near 4550.
Considering the stochastics, RSI and MACD, all three are giving a higher credence to the possibility that we may be seeing some upward movement for next week.
However, I wouldn’t go long for now. I would rather go long only when the index is able to create a higher peak with no signs of bearish divergence. For now just trade the range.
DIZ is an eye catcher for its long spread and large volume on the last trading day last week. There is an upward potential of up to P13 based on the resistance line connecting the previous peaks.
Buying at the current price 9.50 and selling near the previous high at 11 would already give you around 14% net profit.
This is definitely a buy but only for the short term.
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