World markets moving in Trading Range-Technicals Analysis

Levels to watch for Dow Jones

Today US market also open in green and Dow Jones is trading at 11379 up 276 points. So it is important to see which levels are important for the Dow Jones. As we can see that Dow Jones is trading in range since August 2011. Dow Jones has to move above 11717 to see more strength in it. This is a upper trading band level and may act resistance for the index. Support is at 10550 level which is lower band of trading range. If Dow Jones moves above its resistance level then it may go up to 12500 level.

Europen Markets Showing Strengths

Above is a daily chart of FTSE index. FTSE has been trading in a range since August 2011. As we can see that its upper band is at 5450 & lower band is 4869.Today FTSE closed at around 5399. Major resistance for the index is at 5450. If it goes above it then next leves for FTSE is 5750 & 6000. Down side is cappend at 4869.

Indian markets (Nifty) moving in line with world major markets i.e. in trading range

Nifty is trading at 4979 up 91 points. So it is important to see which levels are important for the Nifty. As we can see that Nifty has also been trading in range since August 2011 after US downgrade by S&P and it broked down below 5200 which was acting as support and turned into resistance. The upper trading band level is 5200 and may act resistance for the index. Support is at 4700 level which is lower band of trading range as from last 3 months it is acting as major support also. Depending upon the global cues if Nifty moves above its resistance level then it may go up to 5500 level else on downside it may touch 4300 (Fibonacci Retracement level.

Hence the developments in developed markets will decide trends and any breakout either up or down will become the secondary trend for the markets. Primary trend is downtrend and intermediate is sideways movement i.e. in trading range.

So don't enter market right now let the trend to get confirm if you are investor or else if you are trader then it is a good opportunity to buy at 4750 levels and sell at 5150 levels.

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