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.As was suggested yesterday, the Index did test the blue down-sloping trendline. As expected, we did have a solid bounce back up.
From the pattern of the chart, it does seem that this downside move has exhausted, and it may now resume its upward trend. However, the correction from ~5250 to ~4835 has been rather steep. That has allowed some negative sentiment to build up.
That will contribute to some anticipated resistance around the 5050~5100 levels. As of now, we can term this bounce as a correction to the previous fall. If the Indices make a good base here, and exhibit a short term bullish pattern to emerge, than only will we label this as a fresh move up.
For those who have exhibited patience to buy, it is suggested to wait just a little longer. A short term bullish pattern has still not formed. For bottom hunters, this could be an ideal opportunity to buy. However, prudence suggests that the stop may be placed at 4835.
Trade happy after planning your trade.
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