FINDI 30 - HEAD­ING INTO RE­SIS­TANCE

Finweek English Edition - - Creating wealth -

Trend:

Up, but over­bought in short term. Strat­egy:

Traders take prof­its on short-term po­si­tions. • The Findi 30 in­dex (fi­nan­cials and industrials) is head­ing for an­other rally to line 2 re­sis­tance of a large chan­nel (with line 1). It should be the fi­nal rally of the cur­rent run be­fore a cor­rec­tion hap­pens. • The MACD os­cil­la­tor (on top) is giv­ing a neg­a­tive di­ver­gence from the over­bought level (ie, the MACD isn’t mak­ing a new high; un­like the price, which is). That’s a warn­ing of a cor­rec­tion to come. Traders there­fore take prof­its on the next bounce to line 2 (25 200 level on the Findi 30 in­dex). How­ever, in­vestors should keep hold­ing. Cur­rent short-term sup­port is at line 3 (24 500). A clos­ing price be­low that will lead to a larger cor­rec­tion back to line 1 sup­port at 23 300. Line 1 is ex­pected to hold if

¤ retested.

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