After two consecutive sideways days we were expected to see a trending market today .
The index opened at 42891 with a gap up of about 400 points, and formed a red candle with a big wick on the downside indicating a positive momentum ahead, the opening volumes were also more today as compared to previous days which further confirmed the chance of recovery. It continued to go up and faced resistance at 43000 as it was a psychological round level. Then the index reversed and it is currently trading near the day's low. Sellers will be activated after the breakdown of the days low which will result in a momentum on the downside. The stop losses of the buyers will also be hit adding fuel to the momentum. This presents a good shorting opportunity, with targets till PDL and beyond. Or the index may take support from the day's low and reverse. Which would result in a movement on the upside.
Disclaimer: Not investment advice, trade on your own risk
The index opened at 42891 with a gap up of about 400 points, and formed a red candle with a big wick on the downside indicating a positive momentum ahead, the opening volumes were also more today as compared to previous days which further confirmed the chance of recovery. It continued to go up and faced resistance at 43000 as it was a psychological round level. Then the index reversed and it is currently trading near the day's low. Sellers will be activated after the breakdown of the days low which will result in a momentum on the downside. The stop losses of the buyers will also be hit adding fuel to the momentum. This presents a good shorting opportunity, with targets till PDL and beyond. Or the index may take support from the day's low and reverse. Which would result in a movement on the upside.
Disclaimer: Not investment advice, trade on your own risk