March 21, 2014

Weekly update

NIFTY continues to trade in a range... most probably we are seeing formation of a diametric (diamond shaped). If true, we are towards the end stage of this and markets should give a break out of this range.

Direction of breakout is unknown. Note that the broader trend is up ... however this rally is already 25 days plus old so chances of additional upside looks remote. What we can have is a correction which will lead to formation of a higher swing low followed by another rally.

Higher low formation can happen between 6200 and 6400.

On weekly charts, markets are simply consolidating. Here the trend will be up with SL at 5970 spot.

On a different note, markets are open tomorrow for 2 hours live trading. I will be ignoring this day as historically volumes are very low and it does not make sense to download/ upload the data. So for me, the week has ended today.

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