(Please click on the charts to enlarge)
Charts courtesy:iCharts
TECHNICAL
There are a little signs of positive divergence in indicators and oscillators on the charts. But the zone between14075 to 14250 poses a strong resistance on way up. Then would come another boundary at 14677 which needs to be broken to confirm that an intermediate term bottom at 12500 has been formed. Until then we might remain in a range between these two blue lines. But on a breach of 12500 levels, we might be heading lower towards 12000 to 11000 levels in medium term.
The big Q: which way the impending knee jerk reaction of 22nd July will break out the blue boundaries on the chart given above? Or will it really break out of this range! It is that million dollar question! There are lots of ifs and buts. Let us be some dramatic:-
Negative Scenario: If negative reaction comes near lower boundary, say 13000, then breaching of 12500 is most likely and markets may turn negative once again. But if it manages to stay around or above present levels before 22nd and then negative impact could be cushioned well above 12500.
Positive Scenario: If positive reaction comes at present levels or around 14000 levels then expect a sharp move towards 14677 though, this could prove to be a formidable resistance. A positive reaction from lower levels obviously, is any body’s guess. This will keep the lower boundary fragile and upper one firmly intact.
The above scenario would be reviewed after 22nd, if required.
All eyes have turned away from crude chart for the moment. But crude oil is likely to remain weak for the time being. Its primary support is $100 and intermediate $120. This will surely help the markets in near term but…only after 22nd.
Wish you a happy trading week!
The big Q: which way the impending knee jerk reaction of 22nd July will break out the blue boundaries on the chart given above? Or will it really break out of this range! It is that million dollar question! There are lots of ifs and buts. Let us be some dramatic:-
Negative Scenario: If negative reaction comes near lower boundary, say 13000, then breaching of 12500 is most likely and markets may turn negative once again. But if it manages to stay around or above present levels before 22nd and then negative impact could be cushioned well above 12500.
Positive Scenario: If positive reaction comes at present levels or around 14000 levels then expect a sharp move towards 14677 though, this could prove to be a formidable resistance. A positive reaction from lower levels obviously, is any body’s guess. This will keep the lower boundary fragile and upper one firmly intact.
The above scenario would be reviewed after 22nd, if required.
All eyes have turned away from crude chart for the moment. But crude oil is likely to remain weak for the time being. Its primary support is $100 and intermediate $120. This will surely help the markets in near term but…only after 22nd.
Wish you a happy trading week!
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