August 21, 2008

Nifty touched 4430 a couple of times yesterday but was not able to break out. Markets are between significant technical levels. The 5 day average has gone below the 20 day average. This is a negative signal. Candlesticks however seem to confirm the hammer of August 19, indicating an upmove. Asian markets are weak this morning and crude is near 117. We should probably open down.

Trading strategy: Close any open positions. Stay neutral till end of day. If market is below 4400 then short. If market is above 4430 then long
Supports: 4400-4410, 4316
Resistances: 4430, 4482