November 1, 2016

Market outlook

Daily charts
- trend is up on daily charts
- today, markets closed flat. AD was negative
- resistance expected at upper trendline of falling channel
- some people are seeing H&S
- break of 8500 can result in correction to 8000-7800
- option writing resistance 9000 support 8500






5 min charts
- trading signals as shown on chart


15 min charts show breakout failure...


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5 comments:

  1. Arvind.Z.November 2, 2016 at 7:58 AM

    Sir.Happy new year to you.
    Regarding H&s pattern,I need you to clear my confusion.Normally I was believing that the the shoulders are nomaly in Inverted V shape.But here it is not so.I mean its series of inverted vvAvv(PL take v as inverted)if we see 8500 as neck line.What is is your opinion about this type of H&S pattern is in line with the H&S concept?

    ReplyDelete
    Replies
    1. Kamalesh P LangoteNovember 2, 2016 at 8:17 AM

      There is this normal H&S which happens at the end of an uptrend. The inverted H&S happens towards the end of a downtrend.

      Refer http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:head_and_shoulders_top_reversal
      and
      http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:head_and_shoulders_bottom_reversal

      Delete
  2. Arvind.Z.November 2, 2016 at 12:06 PM

    Sir .Thanks.Probably I could not explain you properly.Pl forget about INVERTED.I wanted say that each shoulder will have only one peak .But here there are series of shoulders at both ends.Is that ok for a standard H&S pattern?Hope you understood me what I want to convey.

    ReplyDelete
    Replies
    1. Kamalesh P LangoteNovember 2, 2016 at 5:10 PM

      Not necessary.

      I prefer to go by price action and see what the market is trying to tell.

      We have a support at neckline but the buying which happens fizzles out soon.

      Delete
    2. Arvind.Z.November 3, 2016 at 6:06 PM

      Thanks sir.I agree with you.Ultimately what pricing structure wants to tell you is most important.My concept is getting clearer.

      Delete

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