The Grand Daddy of technical analysis, the Dow Theory, indicated that the US markets have slipped into a primary down trend – in other words known as a bear market. The Dow Industrials closed below its May trough of 9810, a day after the Dow Transportation Index closed below its May trough of 4034. I’m […]
The chart below is that of US bond ETF. The breakout here is quite obvious and significant. Looking at India’s 5yr interest rate swaps – a downward trend seems to have been established. The message is quite straight forward: investors are seeking the safety of bonds and hence another wave of selling in the equity […]
As can seen from the chart below, a gravestone Doji formation is visible on Nifty’s weekly chart. This pattern is moderately bearish and a follow up selling this week(Friday’s close) that takes Nifty below the low of 5259 would draw in more sellers. Aggressive strategy would be to sell below the low of last week while a conservative […]
After a bout of choppy trading in the last 2 weeks, the USDINR pair closed above its 200 DMA. The point to take note here is that the pair crossed this level after registering a island reversal and is a pointer to further strength for the dollar against the rupee in the coming days.
Yesterday’s close above 5200 on the Nifty does bring in some positives for the index but the bears may not have surrendered their last line of defence. As can be seen from the above chart, the correction from the April highs to 4786 has happened in a 5 swing fashion – usually an indication that […]
Here is the chart of India VIX. A reverse head and shoulder seems to be under construction. What is important to note here is that the pattern formation is taking place after a very low reading on the VIX (read complacency). Once the reading crosses the neckline (35-36 level) a lot more volatility may be […]
The Dow Transports and the small cap Russell 2000 closed below their respective 200 DMA. These were the 2 important indices that held above this much tracked level all through the Month of May and this could mark another significant breakdown in the US markets. As long as the Transportation index was holding above its […]
So far the Indian markets decline has stayed within the bounds of a correction and much similar to the previous two corrections – roughly a 12% drop from the highs. However this time around, there are a few variations. There has been considerable technical damage in many of the world indices and some have even […]