Tuesday, February 16, 2010

Markets consolidating with increase in intra-day volatility...what next ?!


Overall the markets seem to be in a consolidation phase, but there is heightened intraday action seen and the volatility is increasing.

There are sudden moves happening either side and markets still seem to be direction-less and this is indicated by the fact that the futures oscillate between premium and discount during intraday.

Overall bears have an upperhand below 4845 and bulls are unable to push the markets beyond that level. Only a move above that would bring in a round of short squeeze to 4885, 4930 levels but that doesnt seem to happen and the 20 DMA is steadily decreasing and will be at 4885 levels soon which should act as a strong resistance even if any bull move happens immediately.

A powerful bull trap is seen around 4825 levels and if markets struggle to move up that level in the early session today, there are chances of it cracking further down and testing 4757 levels.

Resistance levels : 4825, 4845, 4885

Support levels : 4785, 4768, 4757

-
Happy Trading
www.tripleint.com

No comments: