7890 will be important resistance for the market & any break of & sustaining above the same shall open any opportunity.
Till the time is holding good we shall avoid taking long positions- having said that there could be short term bounce to the zone 7750—7775 inside the channel.
Yes, it is quiet challenging to know the market direction but I figured out correctly yesterday when prices after gap up—it was falling in “b-wave” & came close to previous lows@7735-which “a-leg” of the correction. “c-leg is usually lethal & explosive-which hinted yesterday when it started crossing 7760 post making similar lows in the zone 7735—7745.
Currently it seems that we have 1-2-1-2 yellow –blue sequence running & higher possibility of breaking the channel downside where our key level 7680 will play important role.
Be careful 3rd of 3rd waves are usually scary & we are running into downside direction- so any break of channel on downside can accelerate the prices below 7680.
The move shown in oval shape signifies how volatile market is- as you are running in front of bullet train-so one has think with supersonic speed to sustain in market. We all know market is very dynamic & we need to adjust every moment-when new prices are thrown to us.
Look for pull back & confirmation for going shorts in current down move & target zone of 7560-7575 where we shall complete 161.8% of blue 1st wave.
Any buying shall be taken only above 7850.
Abhishek H.Singh, CMT