These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.Today the market seems to have tested the previous bottom of 4450. It almost seems to have scraped the bottom.
From the microscopic short term perspective, we see something positive. It has made a higher top from its immediately previous swing top of 4797. However, please no not read too much into this. The pattern of the chart has still not shown a convincing bottom. For the market to return to its short term up trend, the top of 4815 must be broken on the upside, and the low of 4620 must not be violated.
On Friday, we had a longer lower shadow on the daily candle. Today’s longer lower shadow seems to have more significance than that of Friday. Both on the BSE as well as the NSE, the moves seem to have been positive. Further, both the exchanges show white bodied candles. Bulls would not be advised to break open the champagne bottles as yet. Allow the sentiment to ferment for a few days more and allow the negative sentiment to change to positive. Then only would it make sense to say firmly, that today was indeed a significant bottom.
Trade happy after planning your trade.
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