RSI Indicator:
Conventional Interpretation: RSI is in neutral territory. (RSI is at 59.39). This indicator issues buy signals when the RSI line dips below the bottom line into the oversold zone; a sell signal is generated when the RSI rises above the top line into the overbought zone.
Additional Analysis: RSI is somewhat overbought (RSI is at 59.39). However, this by itself isn’t a strong enough indication to signal a trade. Look for additional evidence before getting too bearish here. Continue reading S&P500 Technical Analysis – 25Nov2015→
Crude Oil continues its downtrend. $40 per barrel has been its long term support, which will hold. More important question is whether the global Stock Indices deserve to trade at current levels if global growth is indeed looking bleak.
Nifty Put Options went explosive today with Nifty coming close to 8050 today (day low 8052), having lost nearly 600 points in the last two weeks, making people want to buy protection as urgently as possible, at whatever price. We were selling Puts (with good profit) that we had bought when they were much cheaper. All those folks who resisted buying Puts, hoping for a pullback, could no longer wait and watch the market sinking, and see the Nifty Put options swelling in value 50% per day, every day!
Imagine, Nifty Dec 8500 Put option was at Rs 50 at the start of this series, and nobody really expected much downside despite sluggish moves in November 2014. That same Nifty Dec 8500 Put option was at 383 today, a gain of 666%!! Agreed that Nifty Put options have not paid off always in last 12 months, because of the bullish market, but they pay when markets are correcting from high levels, like in this month. Continue reading Nifty Options Chain Analysis – 16 Dec 2014→
