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Between 2009 and 2011, Sri Lanka’s COLOMBO ALL SHARE INDEX was one of the best performing equity markets. Since mid-2011 this market has lagged the global equities and its peers in the frontier markets. Now the index is completing a perfect chart formation; cup with handle. Cup with handle formation is considered to be a bullish continuation pattern. Price target is usually calculated by taking the width of the chart formation and adding it to the breakout level. This leaves us with a price target of 7,650. Bullish technical outlook is confirmed after the breakout above 6,000 levels.