January 15, 2016

Detailed market outlook

Weekly charts
- trend is down on weekly charts
- falling channel is corrective
- lower end of channel support is around 7200



Daily charts
- trend is down on daily charts
- NF finally breaks and closes below 7500
- last 4-5 days of timepass worked in favour of option writers
- now option writing resistance at 7700 (highest OI in calls) and support at 7300.
- AD was negative; VIX actually dropped today


Hourly charts
- trend is down on hourly charts
- trend will reverse on close above 7650F


5 min charts
- break from trading range is short signal
- cover at close
- aggressive low risk shorts can be considered at circled areas
- in above case, SL would be at day's high




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