November 9, 2016

Market outlook

Daily charts
- trend is down on daily charts
- today, markets opened with a severe gap down but recovered smartly
- initially down almost 4%, markets closed 1.3% negative and close was near day's high.
- final close was still below 8500... my key support now becoming resistance
- AD was negative
- overall candlestick pattern is very bullish and 8000 now becomes a very important support
- considering the volatility, I expect a lot of sideways movement within this large body candle

5 min charts
- severe volatility as markets open near deep supports (8000)
- fast recovery followed by wild swings
- I covered positional shorts in first 10-15 min, then went short again intraday around 8350
- booked around 8220... next short trade around 8350 whipsawed

1 comment:

  1. Sir,
    This is clearly downtrend.Close below 8500 and 26 dma does not indicate enough strength to close above 8500.So likely return even before 8500 & make a run up up to 7980 to gather strength to cross 8500 during this weekend.*020 will be best investment level for investors.