Sunday share tip – HegnarOnline

Sunday share tip – HegnarOnline

The main index fell 0.4 percent last week, from 616.14 to 613.87. Then it is up 11.8 percent since January. Over the past 12 months are up by 20.8 percent.

The big picture has not changed fundamentally over the past week. The main index is around the middle of the upward trend, without the establishment of some formations that indicate that the trend will be broken soon.

But there may be a small head and shoulder formation on time. Faller index below the 610 level, it is a fact, and then the main index falling to 599.

A little uncertain
RSI remained above the 50 level, but only with a cry of distress. As we wrote last Sunday, much can be done in the short term if it occurs.

Faller it back under 50 level, however, it becomes immediately a little more uncertain again. It will also be put a top under the foregoing the RSI the chart, which in this case would be a clear element of uncertainty and a negative signal.

In addition, we still have it marked the breach on the bottom line of the rising trend in the chart RSI this summer. There may have been an early signal that the recovery is nearing the end of this time.

It will then be confirmed with a new violation of the 50-day moving average and 610-level, followed by a fall back towards the 200-day moving average and the bottom of the rising main trend.

Although the trend is further up it is good to be aware of that possibility.

Slightly worse
Except that the breach of the rising trend in the chart RSI this summer may have changed the outlook for some technicians apply basically the same as in the preceding week.

Establishes RSI is now over 50 levels, it is still possible that any subsequent correction stops within the rising trend, and that the recovery continues up to the previous all-time high – and beyond.

650 and then 730?
With the rising main trend intact 650 will still be within reach, and if that level can be broken open for further rise to 730 in the longer term

But first main index established over 615 levels and previous all-time high of 632.37.