The CSE (Colombo Stock Exchange) appears to have a promising future as both indices have broken above the rising wedge and ascending triangle patterns in which they were consolidating for several months. Furthermore, inverted head and shoulder patterns have formed within these patterns.
According to the targets obtained from the inverted head and shoulder patterns, the ASI (All Share Price Index) is expected to reach 10,135 levels at Fibonacci retracement of 0.382, and the S&P SL20 should reach 3,128 levels at its Fibonacci retracement of 0.382.
Similarly, based on the targets derived from the rising wedge and ascending triangle patterns, the ASI is expected to reach around 10,550 levels at Fibonacci retracement of 0.618, and the S&P SL20 should reach 3,400 levels at Fibonacci retracement of 3 and 3.272.
However, there is a possibility that both indices may face some resistance for a short while around Fibonacci retracement of 1.618 at 9,837 and 3,032 levels for ASI and SL20, respectively.
Disclaimer: This chart and analysis are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations. Do your own due diligence before trading or investing in any stock.
According to the targets obtained from the inverted head and shoulder patterns, the ASI (All Share Price Index) is expected to reach 10,135 levels at Fibonacci retracement of 0.382, and the S&P SL20 should reach 3,128 levels at its Fibonacci retracement of 0.382.
Similarly, based on the targets derived from the rising wedge and ascending triangle patterns, the ASI is expected to reach around 10,550 levels at Fibonacci retracement of 0.618, and the S&P SL20 should reach 3,400 levels at Fibonacci retracement of 3 and 3.272.
However, there is a possibility that both indices may face some resistance for a short while around Fibonacci retracement of 1.618 at 9,837 and 3,032 levels for ASI and SL20, respectively.
Disclaimer: This chart and analysis are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations. Do your own due diligence before trading or investing in any stock.
