Ok so we had yet another small gap up today, promptly filled too. The Inflation numbers were bad, and the news I guess, was discounted by the market (or maybe we might have late reaction next week??? As it is, we are now days, kinda reacting late to things!). What confuses me, why we had Inflation numbers early today? Anyways we failed to hold to our Highs of the day. Maybe it was just profit booking on the weekend, considering the fact that on Monday we are closed. Now 4700 looks like a good support, and 4800, though it looks like a good resistance, but I feel we might take out the resistance next week and pave our way for higher ground. The reasons for my bullish bias; Open Interest in 4700 PE and improved Market Internals. But on the other hand it’s a long weekend for us, and Markets tend to surprise us when we least expect them to do so. As for our favorite Dow: any movements in Dow today, will have a filtered effect on us on Tuesday, till then I guess Que Sera Sera!
hi mbn,
ReplyDeleteThis is regarding the downtrendline for 11-Apr nifty 5 min chart.
Once the downtrendline is penetrated to upper side but the penetration is not sustained, we need to modify the line to use the recent high. If that is done , the subsequent 2-3 false penetrations won't exist.
regards,
vin