December 15, 2013

Weekend commentary

NIFTY closes at weekly low and loses 230 points off the weekly high. We have a sequence of 4 continuous days of lower highs and lower lows. We had a gap down opening on almost all days this week.

The initial start of weakness was apparent when markets opened 150 points gapup on Monday and sold off immediately. We used this warning to exit all long positions and this was done before 10am on Monday.

Coming week, expect resistance at 6300F... if short, this would be a decent SL.

On weekly charts, markets have sold off exactly from upper trendline of expanding triangle. If this pattern is proved correct, then we should have a correction to 5200 levels. If you ignore this pattern and look at basic charts, then you should not be worried as long as nifty holds above 6000.

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