Trend: Down since Sep 2013.Mode: Trending down.
Review of previous Analysis:
Trading recommendation – CorrectCycle Analysis: Daily major cycle is trending down and upside is very difficult and more downside probabilities are high. Pullback may continue today as short term cycles are rising.
S/R Levels – Correct
Direction View - Correct
Pullback continued yesterday as expected and prices reached the resistance level of 80 (made a high of 79.975) which was repeatedly being mentioned by us since last week. Assuming one sold at 79.95, 1st target of 79.77 has been achieved.
• Sell Signal: Short term cycles are near peak and a fall is expected..
• Buy Signal: -
Conventional Technical Analysis:
Bearish setups –Key S/R Levels:
1. Price made a new low on 25th Oct indicating trend is still down
2. Price is below the last support of the speed resistance lines
3. Price is below 30 DMA
4. Price is moving in a downward channel and is yet to come out of it
Bullish setups –
1. Momentum is rising
2. Price has crossed above 7 DMA indicating short term rise
Price has turned down from near resistance zone of 80-80.2, it is difficult for price to rise beyond this zone.
• Resistance Levels: 79.77 - 80.2 - 80.45 – 81
• Support Levels: 79.65 - 79.45 - 79 – 78.5 - 77
Risk: Price may rise quickly to near 80.2 against its downtrend if it remains above 79.77.
Recommendation: Hold short (79.95) for 79.65/79.45 with trailing SL 79.8. (SL level added during the day)
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