Directionless Markets!

Last week was good for Indian markets as compared to rest of the world markets. Indian markets moved some 2.5% upward in last week & reached the stage where in break out or break in both are possible.

If you see the below graph, wherein markets are trading round about the 9000 levels and formed the "SYMMETRIC TRIANGLE." Symmetric triangle is a situation from where both the chances are possible like upward as well downward movement. And in Symmetric Triangle formation you can see that both the ends upper & lower ends will be converging towards a point. This is the main reason which can cause a possibility of movement for the both the sides. And same thing you can in the graph, where in lower end of 8000 odd levels & higher end of 10500 levels are converging & ended @ 9000 levels.



But one relieving factor is, SMA [Simple Moving Average] of 20 days is below the current trend indicating the trend still is upward which you can see in the below graph. And if you see the both the graphs at downward movement at every fall sensex is facing some kind of support like @ 8800, 8650 & etc. And its same for the upward movement also from 9000 & above levels there is immediate resistance at 9200 levels, 9500 & 9750 levels.