Saturday, February 02, 2013
Are We To Have a Chinese New Year Rally?
The chart shows 4 weekly red candles in the last 4 weeks. For the trend to reverse, a green weekly candle must appear first. So keep watching for this to happen. If you don't see any green candle in place, you have to assume that the downtrend will continue. This is likely as the stochastic is also trending down
Going by the chart, some support will come in at 1590, and if this is breached, the next likely support will be 1527.
So, are we going to have a Chinese New Year Rally? I don't think so. My opinion is that there will not be much fanfare until the GE13 is over. But if there is political chaos in the country over the GE13, and foreign funds pull out, the market will take a dive.
Good luck and Happy Trading. Always bet at your own risk.