Expect futures prices to succumb to further profit taking today ahead of the extended weekend. BSKL will be closed for Wesak Day on Friday.
Futures prices cascaded 0.64 percent, closing at 1776. Trading activities formed a black candle with long upper shadow, implying that
gains posted in the earlier trading session were not sustained. This formed a bearish harami which indicates further downward potential.
The downward price movements managed to bring RSI indicators down from a previously overbought situation.
Additionally, MACD indicators is currently neutral, a signal that bullish momentum is waning. As such, range for the day can be eyed at 1760 and 1785 respectively.
Intraday technical support & resistance for 23rd May 2013:
1st support 1,770; 2nd support 1,765-60
1st resistance 1,785, 2nd resistance 1,796-1800
Strategy
Trade may short with a stop on or above 1785.
GOOD LUCK
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