Indian Market

If you recall from our previous weeks analysis, we did mention that if we were to continue the bullish trend, we Must move up this week. And that is exactly what happened. Since the two lines are narrowing down, the risk is getting bigger. Moreover, this year's budget also will have a big impact on how the indices reacts, at lest in the short term. In the event we break down, 8900 will be the next major support level. In the event we break out(which is highly unlikely, but possible) we could easily see 10800/11K in a few weeks time frame.

Technically, it may not be a good time to go long. If you look carefully, MACD is just hovering in a straight line. And is definitely not trending, most of February. This coincides with the way Indice is moving. After touching 10k earlier this month, we have barely moved. A calm before the storm. Now, whether this calm brings happy news or a sad one, only time will tell. Technically, a correction is Definitely on the cards, as MACD has virtually peaked out and RSI is weakening.

US Market

Every-time we are trying to make new highs, there seems to be some sort of resistance on the cards that pulls all g

ood efforts, down. With Oil, now more or less out of the focus, as it is once again trading at much lower price that the recent time highs, market is now looking for reasons to move ahead. Market always looks for news and views to support it's movements, up or down.

Technically, Dow is correcting and testing it's previous breakout levels around 10950/11K. As long as we hold onto this level, we are still extremely bullish. If in fact we do break this level and go down, we could retest the lower trendline(from chart below) which stands around 10700(as of this writing).

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