Thursday, July 15, 2010

The importance of 1115

What a day! What a crazy, crazy day even by earnings seasons standards. I guess the intraday 1 minute chart should show it best.


The 30 minute chart shown below still looks bullish. Today's overall action will count as another day of consolidation for the bulls. The resistance level which I had marked a couple of days back has now become support and held up very well today.


And finally the daily chart. Short term, the chart looks bullish with the index closing above MA(50).



Overall though, as I have been saying, the chart still looks bearish and will continue to remain so in my opinion, until we break 1115 which is an important level on so many counts -

(a) Resistance from November - December period
(b) Close to where MA(200) is right now, obviously a big resistance level
(c) The highs of June. So, we need to break it in order to make higher highs and the chart to get bullish again.

I feel we still haven't consolidated enough for a further break of 1115. All is good for the bulls till 1080 holds.

Take care and good luck!

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