December 23, 2014

Market outlook

Trend is down and will reverse on close above 8630 spot.

Within this downtrend, markets formed higher high higher low formation for 4 days. Today's close was however below yesterday's close and deep into previous day's candlestick body.

Various possibilities exist at this stage... one is just a pause in this rally or possible formation of a lower swing high. In case of latter, it can mean a double bottom at 8000 levels (+/- 50 points) followed by a rally OR break of recent supports leading to new lows.

These possibilities are shown on the charts.

EOD charts:



Intraday charts: break of trading range in box was short signal. Another signal was break of day's low. Cover was 8285 spot.


On hourly charts, new sell will come on close below 8210 spot.


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