Technical Report 8th February 2012
Technical Report 8th February 2012
Formation:
Indices are hovering around Horizontal Line resistance of 17908 / 5400. Mondays candle resembled a Hanging Man. This is a bearish pattern but requires confirmation. The RSI-Smoothened oscillator on daily chart is placed in extreme overbought territory. The daily chart depicts a Bearish Engulfing pattern. The momentum oscillator on the daily chart viz., the Stochastic is negatively poised.
Source: Falcon
Trading strategy:
We witnessed yet another gap up opening mainly on the back of positive sentiments across global. However, markets pared early gains and a relatively sharp down move during the second half led indices to close marginally above the low of the Hanging Man pattern formed on Mondays session. Also, yesterdays candle resembles a Bearish Engulfing pattern but requires confirmation. The said pattern will be confirmed on the violation of 17582 / 5322 level. In addition, the Stochastic oscillator on the daily chart is negatively poised. As a result of this, a sustainable move below 17582 / 5322 level may reinforce the selling pressure and indices may slide towards 17504 - 17308 / 5290 - 5225 levels. On the upside, 17908 / 5414 level is likely to act as a strong resistance for the markets.
Actionable points:
View Expected Targets Resistance levels Bearish below 5322 5290 5225 5414
Actionable points:
View
Resistance Levels Support Levels Neutral
Source: Falcon
Positive Bias:
Expected Target 208
CMP 205.4
Negative Bias:
Expected Target 356
CMP 374.5
RESEARCH TEAM
Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Mehul Kothari Ankur Lakhotia Head - Technicals Technical Analyst Technical Analyst Technical Analyst Technical Analyst
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