August 27, 2008

We have been in a down trend so far, but markets have been showing indecision for the last couple of days. Yesterday was a clear doji candlestick. We can expect a break out(on upside or downside) soon. Asian markets are mixed and oil is up. We should have a muted opening, with no strong move either way. Watch for the break out at support/resistance.

Trading Strategy: Wait for a break out on either side and then take positions. Also be aware that expiry is tomorrow and market could swing a lot.
Supports:4320, 4260
Resistances: 4340, 4400