Perspective : The excessive bearishness which we saw when the market broke 5300 levels, still seem to be prevalent in the mind sets of traders despite a 500 point move from the lows.It is important to trade the market, not your view of the market.The McClellan is still at a comfortable 43 which would mean that upside possibilities remain.
Back Ground : We spoke about 5608 as resistance in our previous post.Old resistance became support yesterday.Yesterday the market scaled prime resistance 3 ( PR3) in June futures at 5650.
Chart Speak :
1) A failed auction (FA)at 5620.
2) The proper trade set-up would be to play the FA move out of the FA point of 5620 which gives a minimum of 70 points in one direction before waiting for a rebound move.
3) Target for the move will be 5698 and 5720 which is prime resistance 3 ( PR3) for today.
4) an auction above 5653 will keep the buyers in control all day.
5) Breakdown point for the day is 5586.
The above post is for purpose of education only. Similar charts are posted for the BN, LT, RIL, ICICI, TTM, SBIN everyday on our premium webiste http://www.vtrender-2.com/
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1 comments:
FA cycle completes!
Chart posted.
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