February 25, 2015

Market outlook

Markets close below 8800 for 3rd consecutive day but forms higher high higher low (first). Markets closed near day's low.

At this point, there are 2 possibilities:
- nifty forms a lower swing high (current swing high is 9000) leading to break of 8470 / new lows or
- nifty forms a higher swing low (current swing low is 8470) leading to break above 9000/ new highs.

Option writing points to resistance at 9000 (FEB and MAR series).

EOD charts


Intraday charts

First signal was a long signal when markets broke above yesterday's swing high.... this got stopped out with a trailing SL (first box).  Markets were rangebound thereafter and last signal was a short trade when markets broke 8805 spot.


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