Weekly Review for the Week October 13th - 17th October 2008.

We said ‘Technically the market still looks weak and is likely to continue its move down and is likely to move down to its target of 11900 and if it manages to close below 11900 then the next technical targets on the way down are 11150. The market has strong resistance at 13200 on the way up.’

The market unfolded as expected and also did better than expected and saw a low very close to the 10000 mark.

Technically the market still looks weak and there is no sign of strength so far, but the market has a very strong support near at 9700, the market has seen a low at 10240, which is just 540 points away. The market is poised to bounce back anytime, the more it goes down fast the more it sets up to bounce back.

The supports on the way down are at 9700 and resistances on the way up are at 11267-11760

The supports on the way down are at 2908 and resistances on the way up are at 3700

From a trading point of view I would be cautious on the short side would look to go long at the first sign of strength

Happy Trading

Source : Prakash Gaba