Saturday, July 16, 2011

Daily Market Trend Guide -- Friday, July 15, 2011

MARKET TREND FOR TODAY
The Markets yesterday had an extremely volatile session wherein the Markets recovered from its opening lows and went on to register gains, but again pared all of its recovery to end the day with nominal gains. While doing this, the markets have formed a higher top and similar bottom on the Daily High Low Charts.


For today, we are likely to see flat to positive opening in the Markets and thus, again, intraday trajectory that it forms would be crucial to decide the trend for the day.

With the Markets expected to open on a flat to mildly positive note, the levels of 5650 and 5675 shall act as resistance an the levels of 5541 and 5500 shall act as supports.

All lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 53.7874 and is neutral as it shows no negative divergence or failure swing.

The Daily MACD continues to trade above its signal line. There are no potential triggers on either side on the Candles.

Though there are no triggers on the either side currently, the MACD is declining and is likely to cut its signal line from above, taking it in to negative zone.

Furthermore, the Markets still continues to remain in falling range, and now the falling channel trend line puts the overall pattern resistance at 5675.

As mentioned in our previous editions, the Markets shall have trend reversals only when it moves past this levels and until this happens, it will continue to remain in a broad falling channel, though giving intermittent rises.

All and all, volatility in the Markets cannot be ruled out. The Markets have support on its 100 DMA of 5567 at Close but it would be critically important to see if this support is taken. It is overall advised to remain highly stock specific until few sessions and keep protecting profits on either side. Overall, cautious approach is advised for today.

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

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