May 7, 2015

 
  • Crude oil daily candles shows weakness at 200 Day SMA.
  • Daily is yet to break below 20 Day SMA
  • 4 Hour continues to stay above the cloud. Bigger worry for crude oil bulls only if these two levels are broken on closing basis.


 
  • Bearish day's like yesterday should not be a shock when price is trading close to a bearish engulfing pattern in Month chart. Price staying below April month low of 8144 will favour bears. 
  • Immediate levels where support may come for nifty are 8065 and 7961 as shown in 2nd chart. Looking at the month chart these levels too does not look that strong and may end up giving small bounces.
  • First and foremost bulls must get back above 200 SMA immediately to avoid bigger correction. Daily RSI is oversold but if price spends time below 200 SMA it may remain oversold.  



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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