The markets have bounced back well from 5118 to rally almost 570 points. Let us see what the next steps for this rally could be.
1. The entire range from 5720 - 5800 has a lot of resistances. The golden ratio for the fall from 6093 comes at 5721 and for the entire fall from 6229 comes at 5804.
2. The 200 EMA comes at 5724 and the 200 DMA comes at 5834. The 50 DMA also comes in at 5704.
3. The current up move can lead to new highs if we cross the 6000 mark.
4. We have taken 9 sessions to fall from 5754 to 5118 ad so far 7 sessions to reach 5680. If we cross 5754 within the next 2 sessions which would mean faster retracement of the last falling leg and can be bullish.
Nothing has significantly changed in the last few days except a speech by the new Governor. Let us wait and watch how the markets react. The real test begins now as the markets approach key resistance levels now.
At the very least, this week could see the onset of a 200-300 point correction in the markets. This week has key FOMC meeting where the tapering of fiscal stimulus cues could be got, Syria attack by US and RBI meet on 18th of September.
Remember the markets fell because of FOMC tapering the stimulus ad also because of Syria attack.
1. The entire range from 5720 - 5800 has a lot of resistances. The golden ratio for the fall from 6093 comes at 5721 and for the entire fall from 6229 comes at 5804.
2. The 200 EMA comes at 5724 and the 200 DMA comes at 5834. The 50 DMA also comes in at 5704.
3. The current up move can lead to new highs if we cross the 6000 mark.
4. We have taken 9 sessions to fall from 5754 to 5118 ad so far 7 sessions to reach 5680. If we cross 5754 within the next 2 sessions which would mean faster retracement of the last falling leg and can be bullish.
Nothing has significantly changed in the last few days except a speech by the new Governor. Let us wait and watch how the markets react. The real test begins now as the markets approach key resistance levels now.
At the very least, this week could see the onset of a 200-300 point correction in the markets. This week has key FOMC meeting where the tapering of fiscal stimulus cues could be got, Syria attack by US and RBI meet on 18th of September.
Remember the markets fell because of FOMC tapering the stimulus ad also because of Syria attack.
No comments:
Post a Comment