Mesdaq- rise again

Mesdaq, which was in a downtrend after it put in a double-top reversal on July 13, has broken out of the downtrend line on October 3 when it surpassed the 108 level. It's currently in a short-term uptrend and it will be coming up against the horizontal resistance of 113 soon. If it can surpass this resistance, its next resistance levels are 120 & 128. On the other hand, it may weaken & fall back to the short-term uptrend for support at 110 (& rising). See Chart 1 below.

















Chart 1: Mesdaq's daily chart as at Oct 12


















Chart 2: Mesdaq's weekly chart as at Oct 12


From the weekly chart [Chart 2] above, we can see that Mesdaq is still in an uptrend line which commenced in December 2005. This medium-term uptrend line should provide support at 106 (& rising).

The rise in Mesdaq this round is likely to be a more subdue affair because of huge losses incurred by market players in the last round as well as closer scrutiny by market regulators. In fact, I do not see any outstanding stock in this sector right now to lead the "charge" for the rest of the Mesdaq stocks.