April 3, 2015

  • It was a perfect confluence of resistance with Multiple time frames. 4 Hour had the resistance line and One hour had 200 SMA as resistance at the same time. Perfect entry for a short trade.
  • Now bulls must hold above the support zone shown in last chart to avoid bigger correction.

  • Daily is at some resistance levels at 20 SMA and 38.2% Fib level. But Weekly has managed to close above 20 Week SMA. Its going to be a struggle here. Since bigger time frame has managed to close above 20 Week SMA this bounce is likely to extend further.
  • But one has to consider the Month time frame in mind to judge this oversold bounce. March month candles shows a bearish engulfing pattern. So far there is no follow up price action for this pattern. This pattern will be effective only once price moves below 8269 levels.


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My Favourite Quote

"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore