Price closed on Friday just above major support of 1325 and is trading in between the 50 and 200 moving averages, as shown on the following daily chart.
A break and hold above the 50 MA at 1337, along with a rise in the RSI above 50 and further strength in the MACD and PMO indicators, could see price retest 1400, or higher. The higher swing high on the RSI is hinting of further strength. If such a scenario were to materialize, it's important that the 50 MA remain above the 200 MA, lest we see a bearish Death Cross form, followed by selling.
|Tel Aviv 125 Index Daily|
This index is trading under the bullish influence of a moving average Golden Cross and price is above both moving averages, as shown on the weekly chart below.
Look for the RSI to move above 50 and for new bullish crossovers to form on the MACD and PMO indicators on any price rally in order to support a retest of 1400, or higher. There is a large gap yet to be filled above 1425ish, so if price makes it that far, we may see that gap close at some point.
Otherwise, a drop and hold below 1325 could see price weaken to retest minor support at 1300, or even major support at 1225.
|Tel Aviv 125 Index Weekly|