EOW technicals would deal primarily with WLEma & an opportune time for day & Hour technicals to assist.

Day uptrend has lost its momentum by a close below “DHEma” & would attempt to move towards 7839-57 initially. Considering the strong downtrend in higher t/f, there will still be pull backs / corrections along the way. “7756-68” is the initial support failing which correction could take prices to the next cluster zone of 7720-30.

The ST direction is “biased UP“, as long as prices stay above “7756″(5DEma/61.8% retrace of last rise from 7716 to 7820)  & close above these two key averages (21 or 34 hr smas).
Holding above  “7737”(80.0% retrace of last rise from 7716 to 7820), prices would move higher.

Underlying weakness & strength are reflected in technicals. One who follows these signals is rewarded well as well as protected from avoidable surprises. Hour technicals suggesting strength as long as “macd” is uptrending above its trigger & in +ve zone. Day technical is uptrending and would remain so till above “DEma”.  That is the market Rhythm. Always have the trailing number to protect the profits on both longs and shorts.

TA/EW: 

1. “C” has commenced from 8622 which could take prices lower towards 7500-7250..(A=C being 7476). Risk/ Reward changes as prices get closer to this level(It changed when it came to 7540). The “vth of C” has ended at 7540 and one other possibility is that C.3 has ended and C.4 is underway as long as prices are contained below 8225, approx.
2. An inverted Head & Shoulder pattern is unfolding and about to get completed if prices move to 7846 in the opening session. It could pause and if the pause is restricted to 7747-63, it would attempt to break-out. Being EOW, weekly technicals would play their part. Would they reverse from their oversold zones with a minimum close above WLEma-7807 or assert its trend by forcing prices below week pivot-7775. Both Day & Hour technicals would assist in case of a reversal.

During “trending phase”, use a “trailing number based on retracement” to maximise gains. During “Sideways market”, use the “Support & Resistances” to maximise gains.

Trade the direction and act when you “must” – that is following. When trend in all T/Fs are aligned together, holding trades is rewarding and when in conflict, keep booking profits…

View the Trade Table here.