FTSE STI closed 3,187.31 on 8th April 2011, 8 days of successive positive closing since 30th Mar 2011. With most analysts expecting a pull back for consolidation, they also expecting STI to have further upside with possible re-testing 3,280 then the 3,310 level.
Technically, STI is biased towards the upside more than downside. No sign of negative divergence being observed from the RSI and Stochastic indicators. In the ADX chart, the DI pair is positively placed with ADX signal looking on the climb indicating strength in uptrend is developing. The 50d EMA is also looking to cut up the 100d EMA and such a positive cut up will further confirm the upwards trend. Most interesting is the GMMA indicators. The short-term GMMA lines are fully expand in an uptrend fashion. The long-term GMMA lines are being compressed ( long term buyers and sellers are negotiating at current price level ) and look onset to expand. The set of long-term GMMA lines is currently slightly tilting up and if expands, the trend should follow the short-term set of GMMA lines ie trending upwards.
Most of the TA indicators are pointing towards a potential further upside on the market. Earning season is about to commence this week and that could be the catalysts to further move up the market.
Do observed for the followings :-
1. the 50d EMA line and the 100d EMA line, a cut up further confirm uptrend
2. the expansion of the long-term GMMA set of lines
