Demand Giving Way to Supply: Short‐Term: Market’s failure to register a new high above July’14 peak and retreat towards minor averages depict weakness amongst the bulls —reinforcing restrictive stance. With immediate resistance developed around 30,351 — 30,518 levels, expect market weakening towards 29,811 — 29,742 levels. Caution warranted! General Outlook: Despite a deep and steep recovery beyond the 78.6% retracement of Wave A (impulsive fall from 30,639 to 27,354 level) at 29,936 level, market has failed to push 14-day RSI into bull market readings. In the process, three gaps were left within 29,349 — 29,284, 28,620 — 28,577 and 28,179 — 27,866 levels raising suspicion over sustainability of short-term bullishness. Filling of last gap between 29,349 — 29,284 levels would transpire an impulsive fall in wave C (minimum 1,255 to 3,285 points) towards 27,232 level to complete the Zigzag structure (preferred count).
Posted on: Thu, 16 Oct 2014 03:32:11 +0000
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