3480 is proving to be like a Lakshman Rekha ... it made its fifth validation today as a resistance/support line. I still get the feeling that we are looking at a reversal because of the economic outlook (good news < bad news) plus technically, one sees a divergence in MACD & TRIX. But one thing is certain, a breakout is waiting to happen. Major support/resistance levels seem to be 3570 - 3510 - 3480 (we are here) - 3420 - 3365 - 3335.
Calm before the storm
- Thread starter kuldeep49
- Start date
There has been a move up from the major resistance of 3480~90, but the market has been unable to sustain it. The next resistance, 3510 held. If 3420 on the downside is breached, then the next tangible support is at 3365. The divergences were borne out and the market fell quite sharply. The small hedge fund failure was just the excuse that everyone needed. The sharpness of the fall reflects the nervousness in the market. Outlook seems to be for a short term correction.
Against the backdrop of :
- crude prices cooling off
- US markets touching 4 mth highs (they are the DOG, we like to be their tail)
-peace in the Mid East
and no bad news around the corner ....
I won't be surprised if we are heading towards 13k and beyond
Corrections on the way are inevitable, but not sure if we will see a secondary any time soon if this 'geo/politico/economic paradigm' continues ( heheh ... sounds nice to use big phrases)
See this meanwhile (Yahoo has revamped their charts and taken them to a new level altogether !)
http://finance.yahoo.com/charts#chart4:symbol=^bsesn;range=6m;indicator=dividend+volume;charttype=ohlc;crosshair=on;logscale=off;source=
Happy analysing !
AGILENT
- crude prices cooling off
- US markets touching 4 mth highs (they are the DOG, we like to be their tail)
-peace in the Mid East
and no bad news around the corner ....
I won't be surprised if we are heading towards 13k and beyond
Corrections on the way are inevitable, but not sure if we will see a secondary any time soon if this 'geo/politico/economic paradigm' continues ( heheh ... sounds nice to use big phrases)
See this meanwhile (Yahoo has revamped their charts and taken them to a new level altogether !)
http://finance.yahoo.com/charts#chart4:symbol=^bsesn;range=6m;indicator=dividend+volume;charttype=ohlc;crosshair=on;logscale=off;source=
Happy analysing !
AGILENT
Agilent,
What you said is correct. The correction phase was short lived (good news can perk up even the sick!). That hedge fund that went belly-up was bailed out. The reversal took place at around 3420. There now seems to be an uptrend which may take us upto 3570. But the divergences showing in RSI & MACD still exist. Have attached a chart. Curiously, in RSI, we see lower tops & higher bottoms which form a triangle. Is this indicative of a sideways market? In ADX, too, +D is crossing -D downwards today with ADX at 23.5 which indicates a slowing trend plus a reversal. Have also attached that chart. Would appreciate an comments by you and others on this divergence & its probable impact.
Rgds
Kuldeep
What you said is correct. The correction phase was short lived (good news can perk up even the sick!). That hedge fund that went belly-up was bailed out. The reversal took place at around 3420. There now seems to be an uptrend which may take us upto 3570. But the divergences showing in RSI & MACD still exist. Have attached a chart. Curiously, in RSI, we see lower tops & higher bottoms which form a triangle. Is this indicative of a sideways market? In ADX, too, +D is crossing -D downwards today with ADX at 23.5 which indicates a slowing trend plus a reversal. Have also attached that chart. Would appreciate an comments by you and others on this divergence & its probable impact.
Rgds
Kuldeep
Attachments
Kuldeep
You are right, the Divergences do exist. I would have been happier if the bullishness was there from the start today instead of a last half an hour business. Also the volumes are worrying. Look at the nifty stocks. Most moved up on lower volumes today. The volumes have been poor for the last so many sessions. Unless good volumes come we may not see higher levels. It does look like we are not out of the woods yet.
Sorry to sound pessimistic, But caution is still the watch word. Expecting brickbats from the euphoric bulls ...
Regards
Karthik
You are right, the Divergences do exist. I would have been happier if the bullishness was there from the start today instead of a last half an hour business. Also the volumes are worrying. Look at the nifty stocks. Most moved up on lower volumes today. The volumes have been poor for the last so many sessions. Unless good volumes come we may not see higher levels. It does look like we are not out of the woods yet.
Sorry to sound pessimistic, But caution is still the watch word. Expecting brickbats from the euphoric bulls ...
Regards
Karthik
C
I would still wait for a breakout from the rising wedge to go full long otherwise I stick to trading & wait to short, only reason i feel they will strech the market on the upside is cause settlement has always been positive & main reason M.funds NAV time...downside should start from october I guess
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