The third full trading week of the year ended up with great cheers as the index made a healthy advance, thanks to five consecutive daily gains.
As mentioned last week, I expected buyers to take out the critical 6,000 psychological level and they surely delivered. The index reached a 6,195.64 high and closed just a few points below this on Friday.
In the coming week, I would prefer to see buyers take out 6,300. However, I will not be surprised to see the index pull back and challenge the 6,000 level in the next two weeks, at the very least.
TP’s Advice: Be careful in buying stocks. Pick your stocks well.
Key areas to watch:
Resistance: 6,300, 6,500
Support: 6,000, 5,800
Reference chart: http://www.tradingphoenix.net/2013/12/30/psei-the-year-ahead/