Just a little bit more....

It turned out to be a day as anticipated. Weak opening and thereafter a steady improvement to end with a white candle. The candle shows strength and now we are prepared to look upto the 4720 levels where a entire new ballgame may start.

As we prepared to sleep the Europe continued to climb and finally closed after shedding a few points its top at around 1% higher except DAX that closed 0.61% higher. Then as we slept new worries about banks credit woes, inflation and drag of high energy prices weighed heavy on US and the opened flat then steadily went down to close in deep red - deep or not so deep is actually for you to decide. DOW -0.69%, Nasdaq -0.59% and S&P500 -0.58%. Now as I write this there are mixed signals form Asia - Nikkei half a percent in green and Strait Times almost half a percent down. HangSeng is yet to open.

There was a big white candle yesterday on Nifty and the closing was just 11 points below the highest point of the day. The bottom too was just 11 points below the opening -- meaning that inspite of negative opening bulls actually were in control throughout. That being so - what happens today. Will the bulls continue with the same enthusiasm? The indicators remain good today inspite of a confused Asia. MACD divergence is now nearing zero and the fast line should crossover the slow line today. RSI too should crossover the 50 marker and shows strength to do so. Stochastic fast line above slow line - and StochRSI nearing 80 marker. TRIX has turned up towards 1. The icing on the cake remains to be Jaggu's TRIN saying it is bullish.

What it all means that the sentiment remains good and no indicator is actually in overbought zone that should signal a sell off. We may however be expected to be in that territory shortly. The next acheivable target is 4720 which incidently is 38.2% retracement from the may 2nd high of 5299. If we do crossover sucessfully then after probably a small breather (that may be towards this week ending only) we might look towards 4835 levels.

Happy trading.