Monday, June 21, 2010

Top40 - end of the day update


Last week brought us four trading days, with futures close-out on Thursday. 

Top40 progressed further and now there are 5 green closes over last 7 trading days. Index added almost 2000 points in those 7 trading days and formed doji on Friday. Target for falling wedge on Thursday has not been met and there are approximately 1000 more points to go.

What should worry bulls is Stochastic, which is resting around 90 level, but as we know it can stay in overbought position in prolonged up moves. RSI is flattening out and MACD is around 0 level, but above signal line.

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

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