ASI needs to slow down

[smallvilleTop contributor]

ASI will re-test 7150 support in coming days. Though daily chart looks bullish, weekly charts indicate a slowdown. RSI on weekly chart is 75.7 and after 80 it goes to oversold region where a correction needs to happen.
For an overall bullish sentiment, ASI needs to break 7405.

[yellow knifeTop contributor]

Great Smallville....this is what I really need... Technical analysis...+ rep

[slstockVeteran]

Here is an interesting situation.

I think if RSI weekly goes over 80, then ASI will be well over 7405 anyway. But if a correction happens it will fall back below 7400. So to stay bullish it needs to be over 7405 as per what you said but then since the RSI is 80 and oversold it needs a correction. See the issue here.

Noted, weekly was over 90. Then the ASI drop till 7150 made it go to to low 70s. Now mid 70s only. So if bullish sentiment continues
and ASI can stay over 80 for sometime without any significant correction.


Btw, re testing ASI 7150 , will be brutal for some shares. Lot of share did not recover after the last fall of 7400 to 7150. ASI went up to 7350 again but many share prices around 7150 level still.


So far company results have not been bad either. ( except for plantations)

ASI will re-test 7150 support in coming days. Though daily chart looks bullish, weekly charts indicate a slowdown. RSI on weekly chart is 75.7 and after 80 it goes to oversold region where a correction needs to happen.
For an overall bullish sentiment, ASI needs to break 7405.

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[Ethical TraderTop contributor]

Thanks Small & SLS for timely & impatial analysis. +Rep for both.

[sereneTop contributor]

Thanks Small & SLS for timely & impatial analysis. +Rep for both.

[Ethical TraderTop contributor]

Thanks Small & SLS for timely & impatial analysis. +Rep for both.

[smallvilleTop contributor]

Here is an interesting situation.

I think if RSI weekly goes over 80, then ASI will be well over 7405  anyway.  But if a correction happens it will fall back below 7400.  So to stay bullish it needs to be over 7405 as per what you said but  then since the RSI is 80 and oversold it needs a correction. See the issue here.

Noted, weekly was over 90. Then the ASI drop till 7150 made it go to to low 70s.  Now mid 70s only. So if bullish sentiment continues
and ASI can stay over 80 for sometime  without any significant correction.


Btw, re testing ASI 7150 , will be brutal for some shares.  Lot of share did not recover after the last fall of 7400 to 7150. ASI went up  to 7350 again but many  share prices  around 7150 level still.


So far company results have not been bad either. ( except for plantations)

What I meant was - overall market can get slowdown due to reaching higher RSI so ASI can re-test 7150 if so.. Its not a mandatory situation to happen but since the market is a bit overheated with continuous up days, it can cool-off a little.
We saw yesterday it was green though.. Even if RSI hits 80, it can still go till 90s and reverse.. Its all in the bull sentiment and Hi caps trading. Yes it will be brutal if fall to 7150 but it can even stay above 7200-7300 while low TO trading happens and so RSI can still come below 70s.
But if an imminent fall is seen support is 7150.

MACD is turning to a sell, SAR is already down and RSI too.. So I feel it has to slowdown.. If we see low TO days, this can turn the other-side..

I dont bother much about index unless I have index moving shares.. So lets find what shares did not come up from last fall..

[SalmantheGreat]

Thank you SLS and Smallville . Good work.