Wednesday, March 3, 2010

Bulls conquered 5000 fort...To push markets higher...


Yesterday right from the start markets were under the control of bulls and the initial hiccup to cross the 5000 mark with multiple attempts were broken towards the end.

There is a powerful bear trap at 4969 levels and going forward, that will act as a very strong support point.

Markets have also pierced the Bollinger upper band and the implied volatility of call options is ruling less than the historical volatility and is also much less when compared to the put options.

Given all this factor, there might be another strong rally in the short term with volatility expansion.

Resistance levels : 5036, 5050, 5085

Support levels : 4996, 4983, 4969

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Happy Trading
www.tripleint.com

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