October 9, 2014

Market outlook

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. I expect this level (7800) to be retested again before any meaningful rally happens.

Support at 7800 is holding well and option writers remain optimistic that this level not break this series. Call writing resistance is at 8200.

EOD charts:

5 min charts gave a nice breakout above 7870 spot.

Hourly charts gave a trendline breakout today from the falling wedge. However for a buy signal, one should wait for crossover above recent swing high.

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