Tuesday, November 29, 2011
It was a disappointing day,as after the rally yesterday, a follow up upmove was expected atleast till 4900 zone , but the open itself was with a big bang but on the downside. Assuming it is a 4th wave from the recent major low, it can close near the wave 1 high to conform with a simple EW count.This falls within the trigger line zone from the magenta PF from recent swing pivots.
So two probable moves for tommorrow.
1.Price supports at 4770 area and turns up towards the ML resistance.
- Morning session, if we have a hammer bar at 4770 zone , WRB crossing the previous bar with the recent low, a long can be entered.
2.Price breaks down through 4770 support line.
- this if it happens in the later session, it would be more convincing for a greater downmove, as price would have earlier attempted to climb up and then unable to do so, breaks down the 4770 area.
It looks like we're going to see a complex correction with lot of smaller waves moving up and down, and guaging the trend to trade in the short term is going to be difficult due to whipsaws till the trend can be confirmed.