Wednesday, June 6, 2012

EOD Analysis For 6th June 2012 and Outlook For 7th June 2012

First of all, hats off to the bulls for today's show esp given the negativity for the last couple of sessions. Nevertheless, seems like we are reaching the end of an interim bull party for now [5032-5092 band is where the upside seems capped on closing basis - ref chart below] and bears also can just relax. The tug of war may continue in the 4800-5032 band [with tolerance upto 5092 on closing basis on upside and 4750 on downside]

There is nothing great that has happened today but just the nature of discounting the future in advance;
[EW counts help anticipate those moves in advance - courtesy Raghuji] If ECB comes up with a dovish stance today, the upside will try to hit the resistance and come back in all likelihood and it can be expected to be a non-event when it's 'Breaking News' on tv; if the hawkish stance goes on, most of the gains can be expected to be given up.

Charts for reference

One more point to add regarding technicals here [highest weightage for 60 min charts]
Both 60 min and 5 min charts are showing negative divergence i.e. price is making new highs but MACD is making Lower Highs. [For the last 2 days it was the other way around!] 15 minute charts have not shown this feature yet. {Readings checked @ 14:53 IST today}


Last but not the least, hope some of you enjoyed the gains in Tata Motors; Longs were recommended around the 220 zone on spot price on Friday :D Good to book some partial profits and lock in some gains right???

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