Market struggles to find momentum

The ASPI and MPI drifted lower yesterday with heavier volume, which indicates that it can go lower this week. The near term support for the index is currently at 5,800.

We would hope to see the index consolidate in the range suggested in the below graph which is around 6,200 to 5,800.

CITW (Waskaduwa Beach Resort Limited) and CITK (Kalpitiya Beach Resort Limited) debuted and immediately were off to the races, and at one point were up close to 20%, however, ended the day up 12% and down 5% respectively. These are the one off rallies we are seeing in the market, and we will continue to see them day after day.

Unfortunately, the probability of picking tomorrow's upside trade is difficult, albeit it is probable to identify the stock that will move 1 or 2 weeks down the road.

Bartleet Stockbrokers