30 DMA RETESTED
- Gainers 15,Losers 28, Unchanged 56
Yes, the market has been on a roller coaster ride especially the banking sector with huge Bullish spikes from Firstbank, Access, Diamondbank and Guaranty and it seems the GREED + FEAR scenario I talked about last week is beginning to show as greed and fear is at their highest when the market is most predictable.
Resistance levels will play out and support levels will be visited. Overbought markets will consolidate and oversold markets will accumulate. Nothing is more predictable than that.
Today’s market action shed 84.89 points bringing the NSE ASI back at the levels of its 30 Days moving Average once again, This is the 3rd time the Index is visiting this level within 2 weeks, The earlier 2 visits formed “A Hammer Formation” and rebounded:
- The 1st rebound above 30 DMA saw a huge rebound by 285 points
- The 2nd rebound above 30DMA saw a rebound by 140 points
What does all this mean?
It shows the NSE ASI is loosing momentum, and finding it difficult breaking its resistant levels of 27th January 20,896 and 17th January 21,074 points……..
| Date : Tuesday, February 7, 2012 | |
| Market State : Closed | |
| Index : |
20,792.75 |
| Deals : | 3,796 |
| Volume : | 218,046,044 |
| Value : | N 2,277,031,375.97 |
| Cap. : | N6,552,921,610,254.15 |
| Ticker | Date/Time |
Previous |
Price |
%Change |
YTD |
| NSE |
06/02/2012 |
20877.64 |
20792.75 |
-0.41 |
0.30 |
| NSE 30 |
06/02/2012 |
942.24 |
937.18 |
-0.54 |
1.45 |
| NSE BANKING |
06/02/2012 |
283.45 |
279.68 |
-1.33 |
1.98 |
| NSE F&B |
06/02/2012 |
1676.71 |
1675.38 |
-0.08 |
184.16 |
| NSE INS |
06/02/2012 |
119.78 |
117.9 |
-1.57 |
-17.86 |
| NSE O&G |
06/02/2012 |
212.75 |
215.01 |
1.06 |
-2.32 |
A close look at the NSE ASI shows the Index slumped by 0.41% today but does it signal the bearish breakout. Today’s slump only put the Index down to the bottom of the triangle formation and atop the 20,790 support level of 1st February 2012. This not yet a breakout. To qualify as a bearish breakout, the Index need to slump below 20,790 significantly (another 0.41%?) and on strong volume.
We might also see some sideways movements lingering around the 30MA for a few days, no doubt, going slightly above or below the line, before making a decision whether to break upwards or downwards.
For now the current level is technically within a “DOUBLE BOTTOM Formation” If it rebounds above this level tomorrow, or it could be a “DOUBLE BOTTOM BREAKOUT” which ia a continuous downward trend towards 20,730 and 20,600 points.
TA SIGNALS FOR FEBRUARY 7 2012
