The Final Countdown…
I have been telling from few weeks ago that the doomsdays are near and to sit on cash. I would like to reiterate the same once again-Probably for the last time. Why I say so? Read ahead.
I had last week mentioned that the flag pattern on the monthly scale is in a near matured state. Now you notice the last week’s price action. It has formed a “Gravestone Doji” (zoomed view in Box A). This; if confirmed, with another week’s drop, have the potential to send tremors across.
To show you how “Gravestone Doji” works, I have attached the relevant section of the chart in Box B. This is the occurrence from 5 May 2006 onwards .You can see the next 5 weeks were of avalanche.
I will now go to the
I will take the larger view first. Look at the near Head and Shoulders pattern, before the 2008 Crash: - Box C. Now look at the similarity of the latest formation shown in Box D. Is the bell ringing?
In Box E, I have shown the zoomed view of the latest price action of DOW. You can see that a clean engulfing pattern (Near “Key reversal too”) has occurred. Is the bell ringing aloud?
With all these, I think the Doomsdays are near. But if a miraculous turnaround happens, this study may become invalid.
Petrol to become Cheaper?: The decision to free petrol prices is a great move. Kudos to the government for the great timing... Expect the days we get petrol for Rs.30. Foolishness? Read ahead…
I have added another chart, which compares the market action and Crude oil price. When market crash, crude oil follow suit and vice versa. So, if the expected market crash comes, and oil companies re-define the petrol price every two weeks, then you may see a probable parity of Petrol and Diesel…
Disclaimer: The views expressed herein are to be used with your own discretion and neither analyst nor the publisher will be responsible for the outcome.
