Tuesday, April 27, 2010

Top40 - end of the day recap for week ending on April 26th

We had big internet issues on Sunday evening and Monday morning and that is why I am posting this update only now. Luckily, today is public holiday, so we missed only one day of action. On Monday we had strong up day, so maybe this internet problem came with some purpose.

Last week Top40 spent bellow 10 period exponential moving average, so we could conclude that short term trend was down during last week. On Monday market closed 1.52% up and it did break sideways consolidation of last four days, paired with solid close above 10 period ema and 25922 level, which I mentioned few times in previous posts.

Stochastic turned on Monday coming from very low base, so there is quite a room for it to advance. Relative strength index bounced from 50 and is looking to reach 70 again, while only MACD looks a bit flat currently.

During last correction market broke trend line of small channel, but it bounced back fast and is now seating on the top of trend line. Bigger channel (that started with new bull run in March 2009) is still very much intact and Top40 is currently in the middle of the channel.

Important development last week was making of double bottom around 25585 level on Top40 or 25800 on ALSI (with conformation on Monday) which could take us all the way to the 26700 on Top40 or 27000 on ALSI. Detailed post about that is to follow shortly.

Moving averages, which help us to determine long, medium and short-term trends:  
  • long-term (200sma) - UP
  • intermediate (89sma) - UP
  • hort-term (10ema) – UP
Trade with trend!

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