Sunday, May 29, 2011

Technicals for the Week

Markets seem to have made a short term bottom at 5329.Lets look at what could be key levels in the coming weeks.

1. The Fall if completed from 5944 to 5329 would be one leg of a fresh unfolding down move. Retracement levels are placed at 5564, 5637 and 5709.

2. The 20 ema is at 5502 and 20 MA at 5490. Close above these levels key to close all shorts.

3. The 200 EMA at 5600 levels is first key target.

4. The Fall terminated before touching the lower Bollinger Band. Usually for a fall or rise to be completed it has to touch the upper or lower end though that is not a rule.

5. Fresh shorts on break of 5360.

6. If its a 3rd leg fall from 6339, first leg 6339-5177, second leg up 5177-5944. Third leg down from 5944 with targets of 4722.

7. The fall took around 22 days so if its retracement of the entire fall it could take about 8-12 days of rise.We have already completed 2-3 days, which means next week could be positive.

8.Gold is holding the 1500 levels and the dollar is weakening.

9. The G-Sec Rate for 10 year bond has reached 8.4 pc. Peak achieved was 9.55 % and we may be a quarter away from reaching it.

To sum up, long above 5502 if sustains and shorts below 5350. In between stay light.

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