- Oscillators showing weakness. Stochastics once again in sell mode before reaching oversold zone which is bearish.RSI14 below 50 mark once again.
- Uptrendline form 2539 broken for the fourth time .If fails to move above it once again, will be bearish.
- 5 dema continues to be bearishly aligned .
Intra Day Chart
- Price is below short and long term emas. All the emas are bearishly aligned, except the 20ema which is bearishly aligned only with the 200 ema.
- All oscillators are weak but only stochastics has reached oversold zone and given a buy.
- Uptrendline broken.
The selling was on higher volumes which is scary. Advance Declines was also highly skewed towards the declines. The right shoulder of the probable Head & Shoulder pattern is forming and one must be properly hedged on positional as well as speculative trades. Keep in mind that the head and shoulder targets will come into fore only when the neckline breaks. Till then be careful on shorts.
The very short term as depicted by intraday charts has turned bearish while the daily charts are neutral. I am now neutral on the market. Would therefore lighten my longs and keep a strict stop on the remaining.
Happy Trading !!