Strong follow-through that saw regional reversed some of Tues losses. Commodites recovery mode set the tone higher. Mkt hit the immediate resistance –7SMA. Technically, the mkt is now at a junction, a premature scene if you are expecting 1000k first, that could reverse the recent downtrend tone.( above the red line)Short is in a tight spot now as a firm opening tomorrow would confirm today’s breakout scenario that could propel the mkt towards 1070 tomorrow , followed by a possible of a breakout towards 1090 in the coming days.
However, I do not expect big rally for the rest of the month as the highly anticipated 1000 k that did not materialise could leave many players at the sidelines yet. Plus, SMAs still converging in a tight range. So the mkt may just consolidate around the mid range of 1030-1090 and upward-bias
With the recent downtrend tone getting thinner, treat the mkt as neutral, if not, a positive one. Range bound play or go for crossover strategy - Sell below 1055, buy above 1060.
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