Overbought Hourlies in cooling off mode but yesterday's low was not broken --will it go with a gap down???
I expected 5820:
But it didnot go below yesterday's low and the gap 5844-5855 has got retained for two consecutive days and that again keeps the chances of a gap-up opening on Monday open.
Sizeable moves have to come only below 5790 and above 5971. Infact even on a gap-up,my preferred trade would remain going short for 100 points and allow Hourly charts to cool down from overbought position. For Monday, this chart would remain my guide:
Just as the persistence of gap for 2nd day keeps the bullish tone alive (and gives the possibility of move upto resistance zone on Monday), formation of BEARISH HARAMI at top(marked in circle), gives the probability of gap-down on Monday.
Details of bearish Harami can be checked at this link Bearish Harami
I expected 5820:
But it didnot go below yesterday's low and the gap 5844-5855 has got retained for two consecutive days and that again keeps the chances of a gap-up opening on Monday open.
Sizeable moves have to come only below 5790 and above 5971. Infact even on a gap-up,my preferred trade would remain going short for 100 points and allow Hourly charts to cool down from overbought position. For Monday, this chart would remain my guide:
Details of bearish Harami can be checked at this link Bearish Harami
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