Translate This Page

Thursday, June 9, 2011

The Projected Uptrend Line (OSK)

We have drawn an additional short-term uptrend line in the above daily chart, which we hope could help us in detecting the end of the consolidation of last Tuesday’s 15.5 pt-gain. This is done by hypothetically extending a new uptrend through connecting the two key lows created in May. If the index stages a strong rebound in the vicinity of this projected uptrend line, this could be an early signal hinting of the end of its consolidation. Anyhow, we would prefer a breakout from the 1,565 pt-level than a potential rebound from the projected trend line to find the conclusive answer.

Anyhow, after the index violated the 1,544-pt resistance level which ended the nearly 2-month old sideways trend, we believe that the market is likely to continue extending the most recent rally that started from the critical 1,474 pt-level. Hence, we continue to maintain our near-term bullish view.

Market support can be found at the 1,544 pt-level, followed by the 1,517 pt-level. To the upside, immediate tough resistance is still seen at 1,565 pts, followed by the 1,577-pt historic high.

No comments: