Thursday, March 19, 2015

Daily Market Trend Guide -- Monday, March 16, 2015

Daily Market Trend Guide                                                        Monday, 16 March 2015
MARKET REPORT            March 13  2015
As expected by the most, the Market  in previous trading session on Friday 13th March opened on a positive and firm note.  The Market  gained 73 points and went on to register intraday high of 8849.75 in the first hour of trading.
This  intraday high, which was achieved early in the day, was the level,  which fell within the expected and foretold  strong resistance range.  And immediately registering this intraday high, the market started encountering  strong resistance and heavy selling.
The bout of profit booking and selling was  much sharper than expected and the market never recovered from  this for the rest of the trading session and finally closed  at 8647 with damage of 128 points on Nifty.

MARKET TREND FOR  FRIDAY, 16 March 2015
In the  Friday March 13 edition of Daily Market Trend Guide, it was mentioned that  Important resistance exists at 8792 ( 20 Day EMA) and  8871  ( Pattern )  and intraday, with supports at the 50 Day Simple and Exponential Averages ( at Close levels ) , which are 8658 and 8677 range.  .

Likewise, the market in spite of all positive clues, failed to move beyond  8849.75 intraday  and encountered heavy selling pressure, but the all important expected  support of 8644 ( Pattern ) was not breached . The intraday low was 8631, which was not much below the expected range of 8658 – 8677.

The resistance was expected as stated, but the selling bout was much sharper then expected . What was expected in a few trading day, was witnessed in a day, and the market  which saw heavy volatility of 218 points Nifty, gave a tall intraday bar on Daily High Low charts of Nifty touch both resistances and supports in a day.

Pattern Analysis indicate that for today and rest of the week, the  range of 8644 ( Pattern ) and 8665 (  50 Day Simple Moving Average) as of today, has become very decisive range.

On Candle charts, the engulfing bearish pattern occurs during a downtrend it may be a last engulfing bottom which indicates a bullish reversal.  The test to see if this is the case is if the next candle closes above the bottom the current (black) candle's real body. The MACD is bearish since it is trading below its signal line.The MACD crossed below its signal line 4 trading days ago. The RSI has just reached its lowest value in the last 14 periods.  This is bearish and its is a Failure Swing.

This technical analysis   indicates that the markets are   still not out of woods. Expect  bouts of selling at every rise. 

Today markets are  expected to open on a flat to weak note. 
Today,  If the market opens above this range and manages to hang on above this range,  this range will act as important support levels for the day. On down side, if the Markets breach these levels,  it should find support at  8560 – 8535 range as indicated by Pattern Analysis.
Until the markets move above these decisive and all important  range, weakness is expected and this is applicable today and for  the rest of the week.   


Milan Vaishnav,
Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member:
Association of Technical Market Analysts, INDIA

www.MyMoneyPlant.co.in
+91-98250-16331

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