July 21, 2014

Market outlook

Trend is up with support at 7450. Resistance is at 7800.

However today's trading range was extremely small and it could be argued that while bulls did not have the strength to pull markets higher, the bears so far did not make any attempt to start selling stocks.

On a different note, a H&S pattern is apparent in charts. The left shoulder and head is already formed and the right shoulder is being formed. Confirmation will be break of 7450 spot.

Intraday charts

On 5 min charts, we can see signs of some weak selling. Break of support at 7705 spot was an indication to go short. However there was no follow thru selling and markets remained rangebound later on.

On hourly charts, trend is still up with support area at 7600 spot. There is evidence of some selling today but this is extremely weak.

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