As we expected last week, the index ended positive for the week, and closed higher by 3.12% from the week before. The recent move lifted the index higher than our resistance level of 9,000, which means the continuation towards the 9,500 (our updated resistance level) is very much likely. Our weekly support level remains at the 8,000 level.
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.
