Recent market strength was indeed a pleasant surprise. While we had looked forward to some possible consolidation during early April, the bulls partied on instead. Near term, we envisage volatility to remain high but with a positive bias.
Technically, the CI had managed to scale past previous resistance levels with buying
momentum likely to keep market buoyant in the short term. On the line chart, it looks like the CI had traced out a bullish “triple-bottom” formation with a successful challenge above the 927 neckline resistance.
Projected target for the breakout point is circa 1,000. While near term RSI (daily) is slightly rich, weekly however is looking extremely encouraging which could lend further strength in the medium term. Expect a good start to the week with 970 as the next resistance which coincides with the all-important 200-day moving average. Downside support is now pegged at 927 with 900 as next. Stay long.
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