November 20, 2013

Markets form a lower swing high

Admittedly, this is a minor one and I am probably jumping the gun as I call this. But nevertheless it now adds far more clarity to the market patterns than before. Another 1-2 days of decline will confirm this.


For now, with the swing high being at 6220 spot... it means we can trade long only on close above this level. Till then a short trade is fine with swing high as the SL.

Option writing points to resistance at 6300 and support at 6000.

You must also read this post to know why I feel the rally is over.


Intraday analysis: initial market was rangebound. First breakdown at day's low (11am) failed and I got stopped out on a short trade. Long trade was not advisable. Crossover above day's high around noon also failed and we got a sell signal around 3pm. Did not take this as it was close to end of day. Surprised to see a fast selloff ... I think this was the biggest move of the day and it was all over in less than 30 minutes.



This is how the 30 min charts look like... horizontal levels clearly show levels of support and resistance. Here it is visually clear that buy above level is now 6240F.

8 comments:

  1. KPL JI
    Final 20 min. of trade sell of with huge volume also broke some crucial support levels
    6160 Res. closing above this is needed for the Bulls take hold of ..
    expecting some more pain left to unfold below 6080 levels.

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  2. Dear sir,
    Up to what time of the day can be taken to fix/asses the days low or days high. How far( % wise ) these figures can be ralied upon? Pl reply.

    ReplyDelete
  3. Day's high/ low is valid till the time you are seeing it.

    For eg., at 11 am we will have one figure for day's high/ low which can get violated later on. That itself tells you something else is happening. So if markets make a new low after 12 pm, we will say day's low broke.... here it is assumed that we are referring to day's low formed as the level till 12 pm.

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