Sunday, July 20, 2008
Hourly RSI has entered the overbought area. Market has rallied 320 points. Expect some selling from here. 10 DMA at 4014 & 5 DMA at 3950 may act as supports.On the higher side 4118 - 4135 area where 25 DMA will act as resistance. If Asia opens firm , you may get your selling opportunity. If I take the move from 3790 to 4110 or higher on Monday as an "abc" bounce forming "A" up., then the "B" with its "abc" down will be trickier. So trade lightly in this "B" wave and allow it to give us some clarity on the subsequent moves.
I must thank Sunil for suggesting an easy way to upload charts.And my sincere gratitude to both Sunil and Manoj for posting my blogs on their sites.I like to add here I have not received any formal training in either Elliott's or Technical analysis but have read extensively on them and put them to test and believe in that much only which works and the rest are given a goby.In the ultimate analysis, all these methods should bring in clarity and strategies to initiate profitable trades and investments.