Stock Market for Beginners

We see that from last week that the market couldn’t break through resistance at the 1540 level. In fact, there were four consecutive days where the market tested sub-1540 levels before falling back down.

Key investing basics:

• RSI is hovering around the 50 level, which is a crucial junction. Strong bullish trends typically stay at or above the 50 mark. If RSI breaks below 50, that would be a bearish sign.
• Price will be testing major support line, as indicated in the chart.
• Price will be testing the MA(50) line. In fact, price is at 1502.56 and has already fallen below the MA(50), which is at 1505.82.
• Price will be testing the previous low of 1487.41. If price falls below this support, prepare for a major sell-off as this resembles a double top formation.
• Increasing volume indicates potential upcoming shift in investor sentiment.

Once again, make sure you practice basic risk management techniques while investing so you’re prepared for the worst in the event of a major market decline.

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