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Wednesday, November 28, 2007

Is The Correction of SOFIX Over?..

OK. As expected the downtend took place. Already almost everybody admits it. The main question now is for how long it will last.

These days good results came from some of the market leading companies. That's fine. Will it turn up the trend?..

Two things:

This is a daily graph of SOFIX. Its value fell to its first support. Today the index started to go up. MACD is very low /but still negative - MACD line stays below the trigger line/ so the market might be oversold. As it is showed by the black horizontal line the index touched the support at 1636/40 and bounced back. The hope says it might continue to go up and the correction might be over... But that says the hope.. ;)

The second thing:
This is the "bad" graph. MACD is still very high and moreover the MACD line crosses the MACD trigger line from above. On the daily graph the fast MA is below the slow one. All these might show the correction has some more way to go.. The first aim is the second support marked by the red line on the daily graph and the black line on this graph. The red circles shows that level - around 1536/40.
The two MAs show the whole trend is still upward, even though the value of SOFIX for the last week fell below the fast MA.

Given these thoughts we might experience some more downside movements, even not in such a fast way as the movement till now. Time will tell... :)

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