Germany – DAX (9331) Target (9475)
DAX closed with a gain of 163 points yesterday. Bears are hitting hard and Bulls are trying to save the market. This is visible by the volatility around the 9300 neckline support. Candlestick chart shows the formation of a “Bullish Harami” pattern. Both Bulls and Bears have their respective supporting points which remain unchanged:
Points in favour of Bulls:
- Daily MACD is in buy mode
- Rise after 5th wave completion
- Upward gap remain unfilled
- Rally after positive divergence in oscillator
- Bounce back from lower end support channel.
- Formation of “Harami” (added strength)
Points in favour or Bears:
- Daily stochastic down tick at overbought zone
- Major trend remains down
France – CAC (4248) Target (4300)
CAC closed with a gain of 93 points yesterday. This was a huge gap up opening and close above the high of Wednesday’s trade. Strong tussle is going on between Bulls and Bears. Bears are hitting hard and bulls are trying to save the market. Nerve shaking volatility from the last 5-6 days clearly shows that. Different technical parameters support Bulls and Bears at different places. Volatility may continue till a trend is established, either a rise above 4300 or a fall below 4100 will determine the trend.
UK – FTSE 100 (6043.5) Target (5350)
Trend inched further higher yesterday after opening on a flat note. Index finished higher by 80 points towards the close. A hammer candlestick chart followed by a long green candle is a bullish occurrence. In momentum studies the fast stochastic has now reached overbought position and is now close to giving a sell signal soon. The RSI (14) and MACD indicator however continues to trade around mid-range in line with price action. The intermediate trend however stands bearish as price continues to make lower top lower bottom formation. Hence unless we have 6125 taken off convincingly the technical situation remains weak. Immediate hurdle comes at 6050 followed by major hurdle at 6125. Support comes at 5495 breach witch the fall might extend towards 5170.
India – NIFTY (6970) Target (7075)
Market continued to remain under pressure for the third consecutive day. Nifty traded in red for the entire day yesterday and fell to a low of 6961 closing at 6970 with a loss of 48 points.
Needless to say, Bears are in total control:
- Major trend is down
- Daily MACD has generated a sell signal again
- Index below all major moving averages
It remains a sell. However, looking to positive move in US and European markets yesterday, a gap opening is expected and Nifty may trade in positive today.
Relief for Bulls:
- Positive divergence in oscillators
- Lower end of falling channel
A bullish harami is a candlestick chart pattern in which a large candlestick is followed by a smaller candlestick whose body is located within the vertical range of the larger body. In terms of candlestick colors, the bullish harami is a downtrend of negative-colored (black) candlesticks engulfing a small positive (white) candlestick, giving a sign of a reversal of the downward trend.
Read more: Bullish Harami Definition | Investopedia http://www.investopedia.com/terms/b/bullishharami.asp#ixzz41GREwkLO
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