Weekly View 12 May - 16 May

There are always a number of elements those could be related to and viewed the market movements. The only thing that matters is if the views and market movement are producing the desired result for you, consistently.

On Thursday last week US posted better than expected Unemployment Claims. This in effect created a buzz in the market of Fed tampering the QE and expected some clues regarding in a speech by Fed Chairman Mr. Ben Bernanke on Friday. Refer to an image 10May_M15_update via previously shared Google Drive link for images we posted, that reflects the market sentiment during his speech and afterwards.

The price tested a low of 34242 and retraced back pretty much and closed the day and the week at 34808, losing 283 points (0.81%) on daily basis and 647 points (1.82%) on weekly basis.

Important things to note are previously the price could not break the 35600 resistance holding since 26 April. The price is Bearish as long as trades below 36800. In addition, it broke a good support level of 50% retracement at 35086 and tested 38.2 % at 34326. For now this level holds but the price to move in upside direction it will first have to break 35086 which, looking at the recent moves, won't be easy. Even after that, to move further up ahead, 35300 level and the previously mentioned resistance 35600 will be the next challenges the price will face if it moves in that direction.  The recent retracement from the previous fall 38338 to 31875 is still considered as consolidation and will be taken as complete if the price closes below 33855, which is below 38.2 % retracement. If this happens then the price is expected to slide further down to 23.6 % and 0.0 %, i.e 31875.

Trade Happy, Trade Safe.