Wednesday, April 11, 2012

American Markets take a tumble

On Tuesday, April 10, the Dow closed 213 points lower while the S&P500 was a full 23 points down. This is the backdrop against which our own markets will open today.

A bearish head and shoulder in the Dow and S&P is working its way down. Lower levels are likely.

The Nifty has been in a trading range for many weeks. The range is getting narrower.  A significant breakdown / break out is imminent.  Given the short term trend which remains down, it is possible that we may move lower than 5150 towards 4800. These are not targets, just possibilities.

Traders who have simply followed the short term trend should have remained on the short side for the past few days. On CNBC-TV18 I had explained that the stop for short positions is 5320. We will see if these levels change today.

Have Fun!

1 comment:

Vimz said...

Hello sir...do you mean a potential H&S is forming or has it broken down from one already formed? I cannot see one yet. Could you maybe confirm dates of shoulder/head highs?