Our index has been going up the past 3 days. Last Friday though, it did close with a bearish looking shooting star pattern. This shows that some investors took advantage of the rally by unloading their positions while some who went bottomfishing begun taking proftis. If you'll notice in the charts, the 3 day rally really just filled the gap that was formed when the index gapped down last Aug 9. It also allowed prices to normalize within the bollinger band. The big question now is, are we going to consolidate within a range (between 4,360 and 4,130) or was this rally just a dead cat bounce and we're en route to further declines? Don't really know the answer to that as of yet. In case you want to trade this very uncertain market, you have the aforementioned price points as your range.
Good luck with your trades!
Chart courtesy of citiseconline.
Disclaimer: My above analysis are just that: analysis. I am in not in anyway soliciting for you to buy or sell any security issue. The only person accountable for the trades you make would be yourself and I cannot be held liable in any way for the same
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