Tuesday, April 6, 2010

Top40 - end of the day recap for week ending on April 4th

Finally, something happed on Top40 front this week! We traded during four days, but Friday saw strong move up. Major closing level that I mentioned few weeks ago (25922) was finally breached and Top40 closed at 26113 on Friday. That was the highest close that we recorded from 17. July 2008. So, good news so far for the bulls.

Indicators are still at high levels, but with most of them pointing upwards, as of Friday. RSI reached 69 and Stochastic is above 80 once again. MACD is around 320 level for more than a month now. There are no major negative divergences so far. ATR is very low and is sitting very close to historical minimum. Currently, 5-day ATR calculated in percentage terms is around 1%.
Next week will bring us four-day trading week and maybe some volatility comes back to the market.

Next question that we should ask ourselves is: “When will see new all time high on Top40?”
Moving averages, which help us to determine long, medium and short-term trends: 
  • long-term (200sma) - UP
  • intermediate (89sma) - UP
  • short-term (10ema) - UP
 Trade with trend!

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