Market Weekly Review:- Correction

With reference to my yesterdays blog, I would like to bring to your notice that the trend line I have considered to be broken is still intact as evident from the charts. Only on the breakout form the level of 12900 - 13000 we will wittiness a real uptrend in the market.

Market weekly review 21/04/2008

DOWJONES DAILY CHART

Today I am only presenting a chart of Dowjone Index. As observed form the charts Dowjones have broken above the long term down trend line as well as there has a been a clear break out form the a very bullish pattern of inverse H&S. If the index is able to sustain above these levels the market will be in bullish mode and my next target on Dowjone is around 13500 to 13800 levels. Keeping this into perspective my present view is bullish on Nifty and target is 5200. The view will change if Nifty breaks the support of 4800 on the lower side.

View:- My over all view is Bullish on markets.

Market weekly review 13/04/2008

DOWJONES DAILY CHART
SENSEX DAILY CHART

Today instead of pasting the regular price volume charts, I am using Moving average charts to determine the strength of the present downtrend. The green lines are long term moving averages which symbolizes long term trend of the market, While the rend lines are short term moving averages which signifies short term trend of the market. We can observe that Sensex there is a broad based selling represented by green lines while a narrow buying by traders is also emerging. But unless the short run moving averages represented by red lines crosses over the long term moving averages represented by green lines. A long term up move is unlikely.

Now if we observe Dowjone's chart short term averages are just moving above long term averages. This may prove to be a inflection point form where the market may resume the uptrend but still the cross over is very weak at this juncture and the probability of it proving to be a false breakout is very high (marked by a yellow arrow on charts). A strong breakout will be a definite sign of an uptrend.

Market Weekly Review 6/04/2008

SENSEX Daily Chart

As evident from the daily chart markets are facing strong resistance and during the current week market tested the trend line twice but failed to cross above that. On the down side markets are having a strong support at 15300 which is marked by a blue horizontal line. This is the low which was formed on January 22, 2008. This is the fourth time markets are testing this support.

Looking at the daily chart the view for current week is very much unclear and a lot depends on US markets. Our markets are exhibiting a lack of strength inspite of global markets doing well. According to me markets may test the bottom of 14700 once again. Any break out below 14700 will signal further down side upto 13700 and 12700.

The only positive signal is form Dowjones which had shown considerable strength during current week. If US markets are able to sustain higher level, we will see its effect on our markets. Considering candlestick pattern Dowjones is forming a Morning star pattern in current month which is one of the most bullish pattern observed. Dowjones will show considerable strength if it is able to close above 12800 which will result into major upside for our markets.