Sunday, February 14, 2010

Update on The Ultimate Momentum Signal

Here is the updated spreadsheet showing the Momentum Signal as on the close of 11th, February  2010.  

As you can observe from the above spreadsheet, the signal has indicated a -10 value which means either a  pause in the downward momentum or neutral momentum before a momentum shift.

The projected levels of closing values required for momentum shift / neutrality / continuation as on the close on  tomorrow, the 15th, Feb. 2010 is given in the table below.

It is seen that the closing values required for an upward momentum shift for the Nifty  future and it's underlying, the Nifty Index have come down substantially.

The coming week will see the market resolving the positive news of 16.8 % IIP growth for the month  of December, 2010, the surprise of China raising the reserve requirements of it's Banks by 50 basis points and
the jitters of the ongoing sovereign debt crisis.

The first major resistance to any uptrend is currently placed at around 4950 - 4960 levels which is the previous minor high as well as the 20 day moving average at 4960. Above that the resistance will be at the 100 day moving average placed at 5020.  The latest moving average spectrum of the futures is given below.

Cheers and Happy Trading!!!

You can also checkout the five year history of The Momentum Signal Spreadsheet from here.

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