- From the above charts Important support levels for SPX in the medium term is seen near 1200 - 1220 level.
- Plenty of resistances in the form of 200 SMA Previous support levels which is acting as resistance add to that the indicators in daily charts are at overbought levels. Having said that if day and week is able to sustain above 1270 - 1280 level bulls may gain some strength.
December 31, 2011
- Bears are in complete control.
- Week MACD histogram has started to diverge positively But We never know when the reversal might take place until it happens. So let price break the resistance line shown in the last chart for a safe bullish trade to happen. If price break the support line then the fall might continue. If price continue to fall then nifty will hit the support line at 4510 - 4520 level for next week.
- Descriptions in chart please click to expand.