Weekly Market Strategy (26-12-2011 To 30-12-2011)

Weekly Market Strategy Weekly Market Strategy (19-12-2011 To 23-12-2011)

Weekly Market Strategy 12-12-2011 To 16-12-2011

European Union’s fate is still awaited and the direction for the global financial markets depends on the decision taken today. It is possible that the decision can cause wild swings in the markets in either direction, and what is the decision remains the all important question. I am not expecting Euro to fall, but what would be the cost of its existence is the question.

If we see what has caused this scenario - it is the uncontrolled expenditure from some of the members of the EU what has put the entire EU into trouble. As all the members of EU are financially very closely interlinked through Euro, problems for one are bound to cause severe harm to others. This uncertainty has been reflected in the global markets throughout last week and the bear rally we had talked about last week fizzled out quite prematurely, without even testing the important resistance zone.

Bullishness was short lived as the Bears took control and pushed the market lower. The market fell after touching the 61.8% pull-back level of the recent fall. The belief, that Bear market rallies are sharp and swift, was once again underlined by the swift upmove of the previous week and the sharp fall of the current week. Market left a gap while moving higher in previous week and also while falling down in the current week. Both these gaps, along a cluster of five candles between them, form a Bearish Island Reversal pattern. This pattern has strong Bearish implication and only a close above Sensex 17003 and Nifty 5099 can negate it.

THIS WEEKS RECOMMENDATIONS:

Weekly Market Strategy 05-12-2011