February 12, 2016

Market outlook with weekly charts

Weekly charts
- trend is down on weekly charts
- this week, nifty broke / closed below the lower trendline
- because of this violation, I am dropping the channel from now on
- the channel provided excellent turning levels in the past but now has no utility.

Daily charts
- trend is down on daily charts
- today, NF formed a hammer
- expect immediate resistance around 7200-7300 levels
- good support expected around 6400 levels
- option writing not giving any clues
- I am continuing to short calls

Hourly charts
- trend is down on hourly charts
- some people asked since when did trend change down on hourly charts
- the signal is indicated with an arrow (price action)
- you can search past archives
- positional traders are still sitting on 400 points of profit.

5 min charts
- no clear direction visible.
- only safe trade was in box area
- this was here I covered intraday shorts but did not go long
- overall a profitable day but with many whipsaws

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