2 things have happened, NSE has broken above 4400 resistance and once again the whole nation is optimistic like in 2003. Biz heads are also very optimistic according to their 'yes' support and you have CBK forcing banks to start setting those lending street tents soon with tbill rates now on the cold floor... Most counters are on breakout mode for now and in the process unga has broken above 13 resistance. Via technical analysis, the nse index is overbought, so a pullback or correction is expected to rope in more buyers on various counters. Fundamentally, all bullish signals have turned on, so a short term correction shouldn't worry anyone with a 2 year or more outlook. So when u buy do u look at the fundamentals or just speculate? Unga is very choppy on short term and illiquid. That can burn a short term trader easily... I loaded @ 8.70 and waiting patiently for 20 though the charts show a high of 40 on Aug 09. That tells me something plus the big volume @ 10.50 in march 2010 and the global cereals rally esp wheat... If the unga share price dips around 10-11 levels i expect supply to stop similar to cfc @ below 40 and kq below 45...
Foreigners (mostly $ money) are yet to load up like they did in Jan. Could the correction rope them in?
On another note, anyone using these tech analysis tools - RSI, Stochastics, trend channels, elliot wave and fibonacci? The emphatic break of 4400 resistance looks like elliot wave 3 is about to begin, heading past 5000...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!