Some serious drop overnight (India)
by m.tamosauskas| August 21, 2013 | 4 Comments
Back from holidays 🙂 As I can see, weak markets started to roll over. Hope all of you stayed safe, but don’t fall asleep – a buying opportunities are clearing up. India is showing extreme weakness. A dramatic sell-off during the last days has brought India’s Nifty already into min. original downside targets at 5282.30. Normally, a reversal signature would now be expected to initiate upside acceleration in the months ahead. However, the substructure of the downswing from this year’s high of 6229.45 so far is incomplete. Moreover, the correlation with most other U.S., European and Asian indices suggests a sustained devaluation lies ahead. All combined, the probability clearly favours a continuation lower. The cut-off point to differentiate between the scenario depicted in the former issues and the one proposed in this chart is 5191.90 – acceleration below there would validate a much larger downswing to 4531.15+/- in the months ahead. This implies a modification of the entire pattern from the Nov.’10 high of 6335.90.