January 30, 2015

Market + weekly outlook

On daily charts, markets formed a large bearish engulfing bear - this happened at the resistance area outlined by the expanding triangle. Option writing clues have also been hinting at strong resistance at these levels.

Has the trend changed? A one day fall does not mean anything and while today's drop was 1.6%, we had a bigger fall of 3% this year at the lower end of the expanding triangle. Of course, this is a warning sign.

For a trend reversal, I will look for formation of a higher swing low followed by it's break. Current swing low is 8060 levels which is way too deep with nothing in between this level and 9000.

EOD charts

Weekly charts - Trend is still up ... swing low is 7900-8000.

Intraday charts - break below box was sell signal... horizontal lines are trailing SL... this got hit towards end of day.

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