Yesterday saw spike in price action after opening on a flat note. Index finished modestly higher by 88 points towards the close. On the technical front price is seen regaining the 200 days moving average. In momentum oscillators daily indicators are seen dipping lower below mid range in line with price action. The stochastic is hovering around oversold territory for quite a while as it gets ready to generate buy signal soon and the same is seen in RSI (14) and M.A.C.D indicator. Weekly indicators shows similar picture as they dip lower below mid range.
The next support level for index comes at 6500 and thereafter straight at 6395.If price stabilizes above this level during the next few days one can expect end to the correction and reversal of action to the up for a target of 6900 and thereafter at 7000.We have a mixed strategy i.e. short on rise with stop placement above 6800 whereas long can be considered on dip with stop placement below 6450.
William Albert Blog 