Thursday, April 19, 2012

Retest of 5150 On the Cards


The latest HLR reading is at 1.14% and is still at the lower end. Volatility ought to increase now but it's a gradual process. My view is that there will be a retest of 5200-5150.

5 comments:

S N said...

Sir, How to make use of HLR for Intraday / Positional trading. Where Can I get a write up on HLR. Thanks.

SN

"ss" Sunil Saranjame said...

SN,

HLR is a kind of volatility measure and gives us an idea about the current state of the market.

Volatility is cyclical - low volatility is followed by high and so on.

This post below may help:

http://timamo.blogspot.in/2012/04/nrds.html

jonak said...

ok...volatility is cyclic....but we may see high range days towards the upside too...why do u expect retest of lows.....

"ss" Sunil Saranjame said...

Generally it doesn't happen like that. Market was the least volatile during the January rally.

The weekly chart is in a downtrend and breaking out over 5350-5400 looks difficult in spite of the 50 bp cut.

On the daily chart, we have a series of lower highs and support around 5135-5150. This is a weak set up and the support area is vulnerable.

S N said...

Sir

Thanks for your quick response.

SN