October 8, 2014

Falling wedge on hourly chart

Current trend is down and will reverse to buy on close above 8050 (more strength above 8200).

Expect strong support at 7800 and resistance at 8050 on daily charts.

Interestingly, highest OI has now shifted to 8100 call while there has been a cut in 7800 put OI. This can have bearish implications.

5 min and hourly charts have different views.

EOD charts

5 min chart - bullish above 7870 spot.

Hourly chart - falling wedge has bullish implications provided lower trendline holds and we have a breakout above upper trendline. Since the line is sloping, it is not possible to arrive at support/ resistance levels here.

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