Last week's idea for a buy re-entry idea off the rising 21-Day exponential moving average (EMA) yielded a +1600 point upside move, following a print of 73627 at yesterday's high. The short term resistance level has become clearer, signaling a level at which sellers looking to step up in each rebound. The index remains in a bullish regime, with the price in close proximity above the rising 8 and 21-day EMA. Once scenario (which has unfolded intraday) is that we could see a push above the resistance level, which would be indicative of buyers looking to assert their dominance. Traders however, should remain cognizant of the potential for the index to fail to hold the highs (monitor for deterioration of candle structure especially on the intraday time frames i.e. 5-min, 15-min, 30-min and 1H charts). Update: By end of day, the share closed at the lows of the day, reflecting a bid loss of intraday momentum.
Lester Davids
Analyst: Unum Capital
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