Tuesday, May 10, 2011

Daily Market Trend Guide -- Tuesday, May 10, 2011


MARKET TREND FOR TODAY


The Markets ended on a absolutely flat note heading nowhere in the entire session with intraday volatility ingrained in it and in the process has formed a higher top and bottom on the Daily High Low Chart.

Today, expect the Markets to open on a flat note and look for directions. Intraday trajectory, like yesterday, shall be significant to decide the trend for today. With the Markets expected to open on a flat note, the levels of 5590 and 5625 shall act as resistance and the levels of 5510 and 5480 shall continue to act as support.

The Markets, after an attempt to make a reversal on Friday, have made a higher top and higher bottom on the Daily High Low Charts which is, though feeble and weak, but an attempt to continue with the reversal.

The RSI—Relative Strength Index on the Daily Charts is 40.2089 and is neutral as it shows no negative divergence or failure swings. The Daily MACD continues to trade below its signal line.

The Markets spent the day yesterday in absence of any triggers, positive as well as negative.

Technically speaking, the Markets have shown signs of bottoming out and has made a potential reversal as we saw discomfort at lower levels and short covering from those levels. However, another important point that  that short covering should get replaced with fresh buying and for that volumes would play an critical role. In both of the previous session, especially yesterday, the volumes and participation has grossly remained a concern.

All and all with the lead indicators remaining intact and no negatives in the offing, the overall technical bias still remains on upside though volumes would be essential with positive intraday trajectory. Stock specific approach with cautiously positive optimism is advised for today.

Milan Vaishhnav
Consulting Technical Analyst,
www.MyMoneyPlant.co.in
+91-9825016331
milanvaishnav@mymoneyplant.co.in
milanvaishnav@yahoo.com

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