Today's upmove triggered stop-loss of my positional shorts as well (which were only part booked on Monday )and fresh shorts that were created today morning at 6060 level as I was anticipating a move in following manner:
.png)
However, that leaves us with an observation that the upmove from 5477 has so far not undergone any meaningful retracement/correction so far because downmove 6115-5970=145 cannot be said to be a retracement of 5477-6115=638.
And therefore,I would advise caution on long position. Though today's upmove was so steep that a trailing stop-loss for longs is difficult to mention--safest being 6040 and tight one being 6111.
Lot of people are asking me whether we would make new highs now?
I think I had answered that question when we had closed above 6040 for 2nd consecutive day.
(please see link SHARK above 6040 and SHARK above 6132 in my posts dated 7.5.13 and 8.5.13)
So a march to 6500+ is coming but I would be surprised if we go straight there.Particularly as RSI-14 has started showing clear negative divergence on Daily charts,MACD 5,34,5 (faster one) showing sell after divergence but MACD 12,26,9(regular one) yet to give bearish cross-over.
.png)
A look at trendlines tells me that we may very well start the day with a gap-down also as ( see red TL) is an important resistance) or we may test green channel before retracing.
.png)
Harmonics at lowest degree says 6157 by CRAB pattern :
.png)
At Higher degree , visualizing a Developing SHARK
Andrew's Pitchfork at lowest level
.png)
And at Higher degree
.png)
So if we open with a gap-up tomorrow then 6195-6207 are probable.
Otherwise retracement may begin with a gap-down.
.png)
However, that leaves us with an observation that the upmove from 5477 has so far not undergone any meaningful retracement/correction so far because downmove 6115-5970=145 cannot be said to be a retracement of 5477-6115=638.
And therefore,I would advise caution on long position. Though today's upmove was so steep that a trailing stop-loss for longs is difficult to mention--safest being 6040 and tight one being 6111.
Lot of people are asking me whether we would make new highs now?
I think I had answered that question when we had closed above 6040 for 2nd consecutive day.
(please see link SHARK above 6040 and SHARK above 6132 in my posts dated 7.5.13 and 8.5.13)
So a march to 6500+ is coming but I would be surprised if we go straight there.Particularly as RSI-14 has started showing clear negative divergence on Daily charts,MACD 5,34,5 (faster one) showing sell after divergence but MACD 12,26,9(regular one) yet to give bearish cross-over.
.png)
A look at trendlines tells me that we may very well start the day with a gap-down also as ( see red TL) is an important resistance) or we may test green channel before retracing.
.png)
Harmonics at lowest degree says 6157 by CRAB pattern :
.png)
At Higher degree , visualizing a Developing SHARK
Andrew's Pitchfork at lowest level
.png)
And at Higher degree
.png)
So if we open with a gap-up tomorrow then 6195-6207 are probable.
Otherwise retracement may begin with a gap-down.
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