Indian markets are completely under performing all global markets for the last 4 months and range bound within 5690-6339. Following parameters were suggesting stopping of down moves and begining of fresh up moves yesterday:-
1- Pennant formation in both EOD and Weekly charts. As it is continuation pattern therefore on going uptrend was expected after its upward break out.
2- As no distribution Pattern seen therefore down moves were not seen.
3- As last 3 sessions were showing consolidation patterns therefore fresh upmoves were projected.
4- Rising trendlines not breached therefore up trend was safe.
Indian markets are already weak in comparasion to global markets and all the world markets showed down moves in following manner yesterday:-
1- All the Asian markets slipped from flat opening and firstly little weak trading.
2- All the European markets moved down after weak opening.
3- US futures moved more than 50 points down after whole day Red zone trading.
As all the Global markets showed down moves therefore already weak Indian markets slipped sharply and closed in deep Red yesterday. Pennant as well as short term trend lines also broken down therefore down ward trend risk has certainly increased yesterday. As intraday charts are again not showing distribution patterns but signalling consolidation yesterday therefore if consolidation develop today then following form of up moves will be considered:-
1- As Very short term indicators are oversold therefore firstly correction(Minor Pull Back rally) of 438 points down moves in last 5 sessions.
2- As long term tren is up therefore bounce back.
3- As last 3 sessions steep fall is showing consolidation pattern of Water Fall therefore V-Shaped recovery possibility is also alive.
Although steep fall seen yesterday but intraday charts not showing distribution patterns therefore I am expecting above mentioned 3 up moves possibilities one by one in the coming sessions and telling one precaution for fresh long positions is that before going long just get confimation of down moves bottoming out.
ॐ ह्रीं श्रीं लक्ष्मीभयो नमः॥
