You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
Yesterday, I have discussed about
the negative divergence on RSI. It is still running but I must say that this
kind of divergence is time bound. We for first negative close yesterday. What all
we need is another negative close. Weakness of RSI can be fruitful we manage to
close below 5650. On higher side 5720 will act as stiff trading resistance.
As of now, it is not indicating for
immediate fall. European markets as well as American market are also on pause
but we have not yet seen any great selling. There are fresh concerns coming on European
market. Question will be asked on ECB decision and QE 3 as well. It is
completely true that none of the economy data is giving anything for
improvement. That’s why I said, “Stop of good news will be first bad news”.
Stock market all across the world
has moved sharper after ECB decision and QE 3 but results will not be fruitful.
Key for all such decisions is having a basic concept and that concept is itself
doubtful. How can higher stock price generate jobs?
What should be done to come out of
this kind of mess in economy? In my view, governments need to generate job. (I
am saying about all countries). It can never be a good idea that everything has
left on private players. Monetary easing or QE 3, these are just a charity for corporate.
We may have more adverse impact. Just think that if they fail after such big
steps.
