January 6, 2015

Market outlook

Yesterday it was mentioned that ".... possible triangle formation between 7900 and 8600 leading to a lot of whipsaws. This means that there is a good chance that current buy signal can fail."

Today the market closed below the previous minor swing low and stopped out the long trade. Now critical levels will be considered at 7960 (support) and 8450 (resistance).

The triangle formation continues so expect a lot of wild swings within this range.

Option writing points to support at 8000... note that despite today's 3% fall, this has not changed.

EOD charts:

Intraday charts: there was one short trade possible when markets broke day's low... shown in box.... this still 100 points profit.

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