November 20, 2014

Market outlook

Trend is up with support at 8300. For a trend reversal, we need faster retracement of last rally.

Swing low support is at 7700. Resistance is expected around 8450-8500.

Sustaining above 8500 will have bullish implications with rally possible to 8900.

Option writing points to support at 8300 and resistance at 8500.

Refer charts for more commentary

EOD charts: today was second day of lower high lower low formation. Note that despite initial weakness, markets closed near day's highs.

Intraday charts: good support at 8300 on hourly charts... no weakness till this level breaks.

Signal levels are shown on 5 min charts... any initial short trade would have been stopped on crossover above 8380 spot (10 am).... the next long trade would have been stopped at roughly 8385 (11 am). This short trade would be stopped at 8360 spot (12.40pm)... last long trade would be closed at EOD (SL at day's low).

Note that the short trades are not recommended for the simple reason that they occurred very close to previous day's support. In fact, I took only the last trade but got stopped out because of a wrong SL.

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