February 12, 2014

Market outlook

We had what looked like a breakout but it was nothing remotely close to one. Normally one would have some short covering or buyers jumping as levels are broken. Nothing of the kind happened.

We got a small doji with a tiny body indicating persistence of selling at higher levels.

The move so far from the lows (5930 spot) to date has been an overlapping kind of  a move. Markets have gained barely 150 points in 7 days (average 20 points per day)... this is not indicative of a strong rally.

Now unless we have a strong move, it will be difficult to remain bullish. At the same time, I cannot short as there is no confirmation or candlestick pattern indicating a trend reversal.

Option writing points to support at 6000 and resistance at 6200.

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