Trading strategy: Yesterday, indices opened more than a percent - TopicsExpress



          

Trading strategy: Yesterday, indices opened more than a percent downside gap considering extreme pessimism seen across the globe. Weakness in rupee added to the woes and as a result, indices closed almost at the lowest point of the day. At present, we are observing that indices have closed marginally above the 78.6% Fibonacci retracement level of the rise from 18144 / 5477 to 20444 / 6230. This level is placed at 18636 / 5638. Going forward, any sustainable move below this level may trigger further pessimism in the market. In this scenario, indices may slide towards 18450 / 5585, which is the ’89 EMA’ on weekly chart. On the flipside, 18820 – 19000 / 5683 – 5740 would act as immediate resistance levels.
Posted on: Fri, 21 Jun 2013 06:09:45 +0000

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