Last week on Top40 was one to forget. Top40 lost 4 (FOUR!) points for a week with volatility dropping to extremely low levels (please check previous post). Top40 traded only during 4 days (Monday was public holiday) and it is important to mark that Thursday and Friday were inside days (price never broke above or below Wednesday’s daily range).
Indicators are still at high levels, with stochastic dropping just a bit and currently is around 70.
There is still potential for double top and Top40 has not closed above 25922 level.
Next two weeks will bring us four-day trading weeks and I’m not sure if volatility is going to increase soon. My opinion is that we are to wait for full 5-day working week to see some volatility.
Moving averages, which help us to determine long, medium and short-term trends:
- long-term (200sma) - UP
- intermediate (89sma) - UP
- short-term (10ema) - UP