April 3, 2014

Market outlook

Some signs of profit booking setting in. We also had a formation of an outside bar.
Outside bars usually signify trend reversal when (a) it occurs after a strong trend and (b) size of the bar is substantial and envelopes the previous bars.

The first condition is met but the second is vague as the previous bars were all very small bars.

Anyway at this point a correction of 2-3 days is welcome as it will help formation of a higher base. Currently the levels which can provide support are 6650 and 6565.

Note that broader trend is up.

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