In other words Sensex has posted a gap on the upside on Thursday. This has strong bullish implications. In the process the index has triggered the RSI signal that it is time to enter for long term investments. On the daily charts the RSI indicator had signalled a buy at 3089. The RSI indicator at that point of time was at 36. It has now advanced to the level of 51. The oversold levels for reference is 25 and the overbought 75. So there is quite some room before this indicator reaches overbought region.

However, that does not mean there will not be any reversals in between. And should that happen, one would have to take the cue and interpret that depending upon at what level the indicator cuts the trigger linedownwards.

Currently the trigger is at 43. On the weekly charts the RSI indicator has cut upwards its trigger line at 40.32. The RSI indicator now stands at 41.17. The oversold region is below 40 and overbought above 50 here. The indicator had gone as low as 31 earlier.

The weekly confirmation over the daily signal has come some 156 points after the first signal. I had earlier mentioned in this column about the likely gap in the confirmation signal. With today's confirmation long term investors can start action on their investment commitment. Surely you would have missed picking up the stocks at much lower prices.

But picking up at those prices also involved risking a break down to the lower side. The market has seen a brisk rise in prices of quite a few stocks. There could be a scripwise reaction for the swift rise on Friday on end of account consideration. You could use the opportunity to pick up then.

And of course there are quite a few who lay low on Thursday only to surge on Friday.