Three weeks of winning streak started to show signs of exhaustion as bulls began to lose breath in the race. Consecutive rejections from the pivot at 46100 +/- 100 were observed and overall weekly closing remained below the pivot. WoW basis index made a net gain of +276.66 points or +0.61%.
Looking forward, the exhaustion signal is obvious and some dip for correction is imminent. 45500-44700 +/- 300 are previous resistance acting as support while 43800 +/- 300 is channel bottom of the current cycle. On the upside, the current channel top sits at 46800 +/-300 and looks difficult to breach. The strategy shall be to sell on strength or protect profits with stops.
The bulls may need to pull back for a refresher and charge again with full vigor. With the winter season approaching an end, it's also time for bears to come out of hibernation and hunt for some healthy food. Let's hope not too many bulls become a feast serving for the angry bears - otherwise, it may turn into an ugly blood bath!
There are no money market auctions during the week ahead (18 to 22 Jan) which may impact the equities market.