Yesterday market has formed a pattern called "Doji" on candle sticks. This is a pattern which shows indecision in the market and it usually also gives reversal signals.
So it is important for us to be very cautious now. If now market fails to move up, then the fall could be quite significant.
5548 will be one of the major support for the market and
5660 will be acting as major resistance.
Now if market fails to go up, it shows that immediate short covering is over and fresh shorts may get added weakening the market further. At the same time, if market is able to break 5660, then market may create panic buying / short covering.
Need to wait for the right level and should avoid trading in this range and when the range is broken and direction is clear, we can take aggressive positions. Until then we can save money by not trading, since market will become very much volatile.
So it is important for us to be very cautious now. If now market fails to move up, then the fall could be quite significant.
5548 will be one of the major support for the market and
5660 will be acting as major resistance.
Now if market fails to go up, it shows that immediate short covering is over and fresh shorts may get added weakening the market further. At the same time, if market is able to break 5660, then market may create panic buying / short covering.
Need to wait for the right level and should avoid trading in this range and when the range is broken and direction is clear, we can take aggressive positions. Until then we can save money by not trading, since market will become very much volatile.
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