This week we will look at what the markets are doing right now...To see the market direction we have to look at the weekly charts..Markets had 3 points of reference while going UP i e 4767-5034-5555 ,while making the move from 4538-6120..We have finished 78% correction of the last wave i e 5555-6120..any further drop will put the markets in the grip of correction of 5034-6120..which could go as deep as 5280-5560.. A bounce is expected from 5650-80 zone towards 5820-5850 (SL for shorts should be above 5900) at least after which the next leg down can start..The long term averages are far away from the price so it will take a few weeks for catching up and then a consolidation phase for any reversals..till then trade the main direction which is down and the occasional bounces..Happy trading cheers..
