Looking to Friday's fall the question comes to mind is that is pullback rally over?
REMEMBER, IN DOWNTREND/ BEAR MARKET RALLIES GET SOLD AT RESISTANCES.
So, which are the resistances.
1) Breakdown level from descending triangle. Which is at 5170-5200 level. See the chart above you can realize that how prices got resisted at breakdown level last week.
2) Second resistance level is at gap area ( 5230-5330) created because of gap down opening on 5/8/2011, as shown in chart below.
3) 38.2% retracement (5095), 50% retracement (5210), 61.8% retracement (5330) of recent downfall as shown in the chart below may act as resistances.
4) The down-trending line shown in chart 1 which is approximately at 5550 level.
5) At last but not least ( which will be important resistance line) is 200 SMA on daily chart, which will act as wall of resistance. REMEMBER, BEAR MARKET LIVES BELOW 200 SMA.
200 SMA on daily chart is right now at 5560 level.
So these are various resistances, where rallies will likely get sold.
At the same time if you see the weekly cart given above, last two weeks formed higher high and higher low, so in short term last week's low ( at 4943), 200 week s.m.a. ( approximately at 4830), and recent major low ( 4720) formed on 26/8/11, will try to give support.
CONCLUSION :- IN COMING DAYS IT WILL TRY TO CONSOLIDATE BETWEEN 4700-5200 RANGE BEFORE TAKING ANY DECISIVE MOVE. IT WILL TRY TO GET CLUE FROM R.B.I. CREDIT POLICY WHICH IS DUE ON COMING FRIDAY 16/9/2011.
DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.
REMEMBER, IN DOWNTREND/ BEAR MARKET RALLIES GET SOLD AT RESISTANCES.
So, which are the resistances.
2) Second resistance level is at gap area ( 5230-5330) created because of gap down opening on 5/8/2011, as shown in chart below.
3) 38.2% retracement (5095), 50% retracement (5210), 61.8% retracement (5330) of recent downfall as shown in the chart below may act as resistances.
5) At last but not least ( which will be important resistance line) is 200 SMA on daily chart, which will act as wall of resistance. REMEMBER, BEAR MARKET LIVES BELOW 200 SMA.
200 SMA on daily chart is right now at 5560 level.
CONCLUSION :- IN COMING DAYS IT WILL TRY TO CONSOLIDATE BETWEEN 4700-5200 RANGE BEFORE TAKING ANY DECISIVE MOVE. IT WILL TRY TO GET CLUE FROM R.B.I. CREDIT POLICY WHICH IS DUE ON COMING FRIDAY 16/9/2011.
DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.
No comments:
Post a Comment