Since the beginning of the year the technological index gained more than 15.5% plus last week rose more than 1.0% and remains in a bullish phase since early December 2016.
Last week the index rose with a narrow range but closed near the high of the week, in addition managed to close above the previous week range, which suggests a strong bullish momentum.
The 10 week moving average continues to provide a solid dynamic support for the price that continues to push upward and bounce from it.
The stochastic is showing an extreme overbought market but continues to display a strong bullish momentum.
Expecting an upward move to a Fibonacci extension at 5,744.00 on a break above the previous week high at 5,649.00 (scenario 1) however a break below the previous week low at 5,573.50 may trigger some profit taking downward to the 10-week moving average at 5,468.00 (scenario 2).