Tuesday, March 9, 2010

Consolidation before another bullish breakout ...


The gap up of yesterday again placed bulls in a very strong position. Though markets faced stiff resistance around the key level of 5150, the amount of retracement from that level is less and bulls still have a strong upperhand going forward.

Markets might also consolidate between 5050 and 5150 levels before bulls charge and push markets to higher levels. Any break of 5150 would immediately push markets to test 5186 levels.

The historic volatility is at year low and the implied volatility is also ruling low and this signifies a strong move in any one direction going forward and as of now a bullish breakout is expected if this consolidation strengthens.

Resistance levels : 5130, 5150, 5186

Support levels : 5105, 5085, 5050

-
Happy Trading
www.tripleint.com

No comments: