September 19, 2016

Neowave outlook on markets by Vivek Patil

....
Generally speaking, whenever there is a huge gap-down action, we cannot rule out some attempt to cover the gap-down area. Such attempt is normally expected within 3-4 days of the gap-down, and same was seen in the latter part of the week.

Last week we feared if gap-down area remains uncovered by the end of the week, then it could form into an “Island Reversal” pattern on the weekly chart, which has -ve implications.

While on Sensex the gap-down area was fully covered, both Nifty & Nifty Future could not fully cover their respective gap-down area. So, on Nifty/NF the Weekly Gap-down and Island remained intact.

....

Remember, we are still keeping both options, Diametric as well as Triangle as a pattern inside the 3rd Corrective. Triangle is generally tricky pattern to trade, as the legs begin to “contract” from “a” leg to “e”.

For rejecting the Triangle pattern, in favor of Diametric, Index should not only close confidently above last Monday’s gap-down area, but also move to a new high for the post Feb’16 “D” leg.

Under the circumstances, as we keep both options open, roughly watch the high-low of last week, at 28251-28779 (Nifty 8688-8848) as crucial levels for the fresh week.
...

Read more at http://content.icicidirect.com/ULFiles/UploadFile_2016919111249.asp

No comments:

Post a Comment