View for 11.01.2009
As per our system, if the low (5236) of yesterday is broken, then we can expect a continuation of the correction. Otherwise we seem to be in course for 5285 (BBtop2.25).
Daily TF is showing as nice divergence and if 5238(bbtop1) is broken price comes out of the bull channel to give us a tgt of 5035(bbot1) and 4907 (bbbot2.25).
past 3 days we have been making lower highs and lower lows with 5300 acting as a good supply zone for the whole week.
The Average Trading range for the last 8 trading days is 42 points. The low volatility is going to give rise to a good range expansion soon, we can expect a 5% move in either direction.
5257 is the floor pivot for tomorrow. Cam levels have also shifted south and for tomorrow are as follows,
H4 :5,276.73
H3 :5,263.09
L3: 5,235.81
L4: 5,222.17
Trading plan : L3 is at the same level as yesterdays low (5236). So its a no buy zone for me. Unless 5276 (H4) is broken early, i will have a negative bias to my trading for tomorrow....!