It has been a roller coaster week in the stock markets this whole week. Starting from the marginal drop on Monday Tuesday & Wednesday, Thursday to the false hope with intraday points higher than Wednesday and finally the dashing of all hopes again on Friday (down -2.2% closing at 35,446.50).
Overall, the NSEASI has lost 2.90% this week. Such a whipsaw market has made it extremely difficult for swing traders to take positions and has kept fundamentalists guessing all week. It was clear this whole week that even interim news from GTB and Zenith bank have almost no authority in predicting where the market might go in the short term at all.
NSEASI WEEKLY CHART
However, technical analysis on the markets still tell a more congruent tale.
The Market as it is on the Chart is within a pyramid from August 2017-2018 with support
within the 35,400 points range.
Though we still expect some bearish sentiment in the coming Months/Weeks (breaking the support Triangle and hitting 34,000 points range)
For now, short term sentiments remain healthy for a rebound this week if closing with a long tail bullish harami within the (50% Fibonacci levels 35,192 range)on their current support levels.
Watch the 50% fibs of 35,192 and 61.8% fibs of 34,174 points