Posted By : Kishore B.S
Hi Friends !!!
The markets opened with a Gap up yesterday and remained positive during the first half of the trading session and slowly drifted to almost flat during the last hour of the trading session. The most important thing to note during yesterdays trading session was that it again failed to cross the 4940 mark which co-incides with the FIBONACCI retracement levels.
The failure has yet again brought the 4946 levels into prominence thereby establishing the fact that unless we are not able to cross over that mark we are likely to remain largely in a trading range. Also to note as shown in the Graph below that yesterday the Indices closed just above the downward trending channel.
As long as the Indices remain above that channel we could be long in the markets since if that support level which is the Upper channel line if broken could lead to further downfall to the lower support level of the channel in the days to come which would indicate that we could fall the lows witnessed during the month of December last year.
For the time being it would be advisable to go long on dips with stoploss of levels just below the upper trend channel.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)