The index closed up 0.76% from the week before; it ended Thursday’s session at 9,096.36. It remains in a corrective wave upwards, but the index constituents have dropped significantly. That signifies the index remaining positive in direction but losing some of its steam as it gets closer to the 10,000 level. Our current support level remains at 8,000 points.
Definitions of key terms used in technical analysis
Candlestick chart – A candlestick chart is a price chart that displays the high, low, open, and close for a security. The ‘body’ of the chart is portion between the open and close price, while the high and low intraday movements form the ‘shadow’. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis.
Doji candlestick pattern – A Doji candlestick is formed when a security’s open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal.
