Wednesday, July 21, 2010

A bullish move to breakout of the range ...


Yesterday markets saw bears taking control towards the end and pushing it down to the range low and the last support level for the day of 5350.

Options data has seen huge accumulation in 5300 puts and today accumulation is seen in 5400 puts as well. With unwinding seen in 5400 calls, today there is a good possibility of a bullish breakout and an up move to test the previous high levels.

How to trade?

It is better to wait for the bullish breakout confirmation and go long above 5420 levels for a target of 5462.

Resistance levels : 5386, 5420, 5462

Support levels : 5361, 5350, 5333


-Happy Trading

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