Nov 19, 2010

Yesterday Nifty Spot touched low of 5907, touch below ichimoku support level & rallied fast to close at 5999 levels. Now the question is whether this indicates reversal of trend. Let us see


On standard param, price is in clouds. Tenkensen, kijunsen bearish crossover on touch point. TS,KS, Cloud Span line all are in parallel at 6121 indicating this level will act as stiff resistance. Short term param chart with oscillators in oversold conditions indicate bounce.
Option reading index is -2.30 which is up from last trading day figure of -0.42 indicating more selling may come back again. Alternatively rise in index indicates enhanced volatility with index swing up to 2 Std Devn.


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