November 24, 2014

Market outlook

Trend is up and will reverse on close below 8300.

Advance decline is not supporting rallies... this is something happening from past few days even as nifty is making new highs, stocks are breaking supports.

EOD charts: 8300 now is a good support.

Intraday charts: Initial weakness was clearly in candlestick charts but you need to understand the first 8-10 bars.

First 2 bars had higher high higher low formation but showed selling as evidenced by upper tails. Then the 3rd, 4th and 5th candlestick had lower tails showing buying but not one of these candles could cross the high of the previous one. On the other hand, we had lower lows.

The next few candles failed to generate any bullishness. We also had a sell signal which failed. The opposite buy signal gave nominal profits.

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