Something for the bulls:
Although Nifty declined sharply today, it is at a critical level on the charts as explained below:
Ever since this bull run started from 5930-40 in February 2014, Nifty has taken support around the 200 hourly moving averages thrice so far, and the low today was again near the 200 hourly moving averages (Simple and exponential).
If this region gives support once again, bulls have some hope to make another attempt to conquer the formidable 8150 - 8200 resistance.
The next 2 days will be very crucial (have I heard this before?).
Ideally, Nifty needs to open with a gap tomorrow and go straight up, since more time spent around these levels will be an invitation to more bears.
The 8100 CE hourly chart also shows how the panic low was bang on a previous low near 15 today.
One overnight hint will be available from the India ETF - INDY in the US markets. INDY gapped down today to 29.68 to fill a gap. If it closes above 30, it indicates that bulls have some fight left in them.
So, watch where INDY closes when you get up tomorrow.
INDY hourly chart :
Although Nifty declined sharply today, it is at a critical level on the charts as explained below:
Ever since this bull run started from 5930-40 in February 2014, Nifty has taken support around the 200 hourly moving averages thrice so far, and the low today was again near the 200 hourly moving averages (Simple and exponential).
If this region gives support once again, bulls have some hope to make another attempt to conquer the formidable 8150 - 8200 resistance.
The next 2 days will be very crucial (have I heard this before?).
Ideally, Nifty needs to open with a gap tomorrow and go straight up, since more time spent around these levels will be an invitation to more bears.
The 8100 CE hourly chart also shows how the panic low was bang on a previous low near 15 today.
One overnight hint will be available from the India ETF - INDY in the US markets. INDY gapped down today to 29.68 to fill a gap. If it closes above 30, it indicates that bulls have some fight left in them.
So, watch where INDY closes when you get up tomorrow.
INDY hourly chart :
2 comments:
Thanks a lot for a superb analysis. It helps to make strategy more specific.
https://www.google.com/finance?q=NASDAQ%3AINDY&ei=fAMZVJj3KcSJsQeJ9IHQAg&ed=us
indy closed @ 30.09
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