March 28, 2014

Weekend update

On daily charts, markets closed near the highs and also the week's highs... this is a bullish sign. On the other hand, there is probable hanging man (bearish).

On weekly charts, I have now done away with the expanding triangle. Hints on this were posted 3 weeks ago as it is rare to see a triangle with 4 contact points on one side.

Now we have two support levels... one is weekly low at 6510 and other is deeper support/ swing low at 5970 levels. First sign of a trend reversal will complete reversal of this week's rally in next week... i.e. close below 6500.


Option writing points to support at 6500 and resistance at 6700 levels.


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