Monday, November 9, 2009

confusing week-end




am doing technical analysis,,and my sole purpose is to predict futuristic moves,essentially i am dealing with probabilities only.
the reason behind describing this is the confusion ,charts are presenting as on today.
1) the sell off was very heavy,in most of the pivotals,but still counters like hdfc,hdfc bank,sterlite,tata motors, tata steel,have witnessed strong supports at lower rates,although,i m not saying that in the first down leg itself ,we can witness sell offs in all counters,but still,the bounce back in these counters was a little bit more to my comfort,looking at the down-side tgts.
2)my system is generating buy calls on weekly charts on some stocks and on the same stocks daily charts,its giving sell calls !!!!,this is indeed confusing.
3)this fall can be a pull-back only to the NECKLINE of weekly bullish inverted h&s
4) but markets cant give a vertical rise,straight away,after such heavy sell offs EVEN IF we are to witness newer highs.

my conclusion is:::we will witness atleast a taste of the recent bottom (may even breach them for a day),,or we may have a higher bottom in place above 4536(a fall will come upto 4650 around approx),and if the fall that i anticipate will be a higher bottom than ,we will have a 3 wave (abc) corrective rise,and than breaching recent lows.
a rising channel possibilities, adds to the confusion.

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