30 august 2012

Close at 5287.8

Day TF trending down with a close below DLema
and so is Hour TF  .
With todays close week trend turns down as well .

I see +ve divergence in hour charts with Hour TF indicators OS....

 

But sir says ,

"Look for +ve divergence when one cycle higher time frame is in the "Oversold region".

For eg: Day is near the oversold region; Look for +ve div in Hour .Caution here is that the week TA is at Overbought region and threatening to "reverse to downtrend".

Remember to pay attention to the higher T/F being oversold to see the lower t/f for +ve div. 9 period rsi is a fairly good indicator.

In the background, keep key support & resistances numbers.

When a major support is broken, such div. may become traps too"

So lets see the 9 rsi day chart ,

RSI is yet to reach the OS region , so probably more downside to be seen .

 

We are in downtrending channel ,

Longs if and when

 Break of yellow TL upside probably happens along with day 9 rsi in OS region ( less than 20) and good +ve divergence in hour charts .

Untill then shorts .

	FIBO. RETRACEMENT TABLE
From	To	Fall/ Rise	0.00236	0.38	0.5	0.00618	0.00736	0.008
5033	5448	-415	5350.06	5290.3	5240.5	5191.447	5142.56	5116
5165	5448	-283	5381.212	5340.46	5306.5	5273.049	5239.712	5221.6