The index closed on Friday just above a strong resistance (3 points on April 10th, July 20th and August 6th) noted R1 on graph. The breakout of the first support S1 turned out to only be a slow down of the uptrend, following a short distribution period.
The bullish signal is unfortunately not confirmed by RSI and Momentum, both showing clear divergences with the index. If this is enough to be cautious, it shouldn't prevent to benefit from a strong bullish trend.
Buy with a target of 10586. Stop Loss if 2 consecutive closes below 10828 (2% below R1)
The bullish signal is unfortunately not confirmed by RSI and Momentum, both showing clear divergences with the index. If this is enough to be cautious, it shouldn't prevent to benefit from a strong bullish trend.
Buy with a target of 10586. Stop Loss if 2 consecutive closes below 10828 (2% below R1)