Friday, March 5, 2010

Bulls ready to charge again after consolidation yesterday ...


Markets consolidated yesterday taking key support at 5050 level and now the expectation is that bulls will be back to push markets further higher.

The short covering has not happened and retails have not yet participated fully in this rally and are waiting on the sidelines for markets to correct to enter and have been selling at this juncture.

The options data is also pointing to a bullish move and there has been huge writing seen in 5000 put. The volatility of the call options is on par with the historic volatility and much lower than the put options which is also pointing to bullishness.

Resistance levels : 5105, 5130, 5150

Support levels : 5070, 5050, 5032


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Happy Trading
www.tripleint.com

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