May 21, 2014

Market outlook

Broader trend up.... but markets form a lower high lower low candlestick. This is the first one and 2-3 are allowable in a rally. Now the trading ranges are getting smaller and it may not make sense to micro analyse these small moves.

There is another view (bearish) which holds that the election day selloff was the first leg of the correction. If true, then some more downside is left ... refer Fibonacci levels for targets/ supports.

The 0 - 100% range is approx. equal to the high low range of the election day result and is 433 points.

Based on this view, 6640-6650 post becomes even more important.

No comments:

Post a Comment