What to expect in the IPO week - 1
As we saw, over the last 2 days of the previous week, the DOW jumped over the 20EMA, briefly, before settling back within the band of the 20EMA and 50EMA. Our bearish stance on the US markets continues and accordingly we took some new short positions. The bearish stance will be lifted only if we cross the previous high at 13740.
India:
An interesting movement happened in the Sensex on Friday. The falling channel was conclusively broken and we closed at 14650.51, abt 80 points above the falling channel. We can now expect lifetime highs. The falling channel and the gapup around 14550-14575 will be the crucial support now.
But a caution needs to be adopted because of the gap up opening. The first gapup, ie, the breakout(which we had said will be crucial support) was followed by the second gap up opening on Friday. This is called the continuation gapup. We now need to watch out for the next gapup,which is called the exhaution gapup. The moment we see this we will need to be very cautious. However we will deal with it once it happens.
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