CI may take a short breather

On January 3, the CI had surpassed its recent high of 1110 achieved on December 11 last year. It did so & closed at its high of 1117 on that day. Is the market going to continue to go up from hereon? Over the next few days, the market shall provide the answer to that question.

If the CI were to break below the short-term uptrend line (aa) at 1112 level as well as the previous high of 1110, chances are the market will correct further. The support level for such a correction will be at the horizontal support level of 1085 or the medium-term uptrend line support of 1080. The formation of a pattern such as a rising wedge is possible.

Chart: CI's daily chart as at Jan 8, 2007