It is time to update Top40 daily chart in order to see what the odds are for this new week.
Last week, after nice up day on Monday, market drifted lower. Close on Friday was at 23994, just a tad bellow 24000 mark. Market tested again 23.8% Fibonacci level for the current up move from March 2009 to early January 2010.
Stochastic (was overbought last week) is around 50 now. RSI dropped a bit as well and it is around 50 too. MACD that broke bellow 0 (with correction which started in January 2010) is still bellow 0, but above signal line.
Moving averages, which help us to determine long, medium and short-term trends:
- long-term (200sma) - UP
- intermediate (89sma) - FLAT
- short-term (10ema) - FLAT
Trade with trend!