The indices have managed to move higher in the downward sloping channel and are likely to face intra-day resistance at the 17900 and 5400 levels on the Sensex and Nifty, respectively. Support at lower levels will be seen at the 5150 and the 17250 levels in the coming session.
The gap on the Nifty chart was filled last week and the index failed crossing the 200 day EMA. The index chart patterns are trading with downward sloping channels; the technical indicators are showing signs of weakness. The RSI and the stochastic have dropped from their overbought zones, but remain above 50% levels. A break out above the channels, with significant volumes, can pilot to a change of trend. Till that happens, the uptrend remains on the risk. Traded volumes will be a key factor in the short term trend determination and traders need to watch the combination of price, volumes and open interest for signs of market trends.
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